Futures specialists have welcomed an Indian government report that proposes letting foreign firms trade the country’s currency futures and options – one of the fastest growing parts of the world’s listed derivatives markets this year.
The Department of Economic Affairs and Ministry of
Finance’s working group on foreign investment
concluded in their report that present legislation, which only
allows foreign institutional investors to trade forward
currency derivatives OTC and not on exchanges was "hard to
"The regulation of futures, forwards and options should be
harmonised," the group said. "The present arrangement, where
foreign investors support the non-transparent currency forward
market and are blocked from using the transparent currency
futures market, is an anomaly. The government [should]
encourage greater trade in exchange-traded in comparison to OTC
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