The RBI has allowed exchange-traded currency futures by putting out guidelines on the same. The guidelines in this regard have been announced. Under these guidelines, three exchanges have applied to the Securities and Exchange Board of India to start the currency futures — the BSE, the NSE, and Multi Commodity Exchange. Trading will start when there are adequate members.

 

RBI guideline says that the contracts should be quoted and settled in rupees and their maturity should not exceed 12 months. Also, the settlement price of the contract would be the RBI’s reference rate on the last trading day. Interestingly, only dollar-rupee contracts have been permitted. Contract amounting to one thousand US$ would be eligible for it.

 

According to NSE Managing Director Ravi Narain the exchange is ready and membership drive will begin soon. Also, the official notification says that the contracts should be quoted and settled in rupees and their maturity should not exceed 12 months. However, membership of recognized stock exchange would be separate from that of the equity derivatives segment or the cash segment.