Author Name: Anurag Bhullar
SEBI, the capital market regulatory body of India, is now eyeing to ease up the restrictions currently involved in Currency Futures trading. C B Bhave, SEBI’s Chairman said that the trade in currency futures is majorly dominated by rupee-dollar. The market has to operate with a number of constraints in terms who all can participate in the trade and to what extent.
Bhave on the question, whether there is a need to introduce more currency futures in the market, replied that a joint RBI-SEBI committee has been formed to look out the expansion needs.
At present, only rupee-dollar futures are traded in the market, and there are only few players that are allowed to participate. The committee is primarily looking at easing these curbs before considering the expansion plans to different currencies.
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