Rate derivatives: Banks seek hike in foreign investor cap

Banks asked RBI to increase foreign OIS transaction limits post JP Morgan's index inclusion spiked demand. The ₹350 crore limit is near exhaustion at ₹11.3 crore by July 10, per Clearing Corporation. OIS transactions for hedging and rate bets settle in rupees, convert to US dollars. Foreign investors purchased $11 billion of Indian government bonds.