Dear Traders,
As you already know, Dhan had paused taking fresh positions in the Currency segment effective 2nd April 2024 to be in compliance with the RBI Circular dated January 5th, 2024 which requires Currency segment traders to demonstrate or establish underlying currency exposure to participate in the currency derivatives segments provided by exchanges.
The said circular came into effect on 5th April 2024, adhering to the circular we paused allowing fresh positions in Currency Segments for exchange-traded pairs involving INR namely USDINR, EUROINR, GBPINR, and JPYINR.
While we await further clarification from the regulatory authorities and exchanges, we have also noticed that trading volumes in Currency Markets on Stock Exchanges are down by > 95% in this time frame. Being a compliant member of the exchange, as a conscious call we do not want to be active in any segment where there is a possibility of regulatory compliance getting compromised. We feel that establishing the underlying currency exposure before allowing trades in the currency segment becomes tedious and complicated for traders.
With that context in mind, Dhan has decided to completely discontinue Currency Trading as a segment for trading effective 1st July 2024. Post which we shall start removing the features & product offerings on Currency Segment across all Dhan platforms - Dhan (App and Web), Options Trader (App and Web), DhanHQ Trading APIs and TradingView Charting console of Dhan.
We understand that many of Dhan’s users loved the incredible trading experience we built for Currency Trading, it’s also hard for all of us at Dhan to let go of a trading segment we built over a period of time. If there is clarity from regulators in the future (we are always hopeful of) for this segment, we would love to rebuild and bring back Currency Trading across all Dhan platforms.
Best Regards
Pravin
Caution Note on Illegal Forex Trading:
As we sign-off, a gentle reminder and warning to all Currency Traders that Forex Trading offered by entities not regulated by SEBI or RBI, like CFD or Contracts For Difference) is illegal and RBI itself has warned against trading with such apps and services on unregulated platforms. You may be liable for penal actions under FEMA, and additionally these unauthorised platforms also carry risk of losing your principal amounts completely.
