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Exchange traded forex futures in 3 mths: Sebi

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Press Trust of India New Delhi
Last Updated : Jan 20 2013 | 9:23 PM IST

Sebi will next work on interest rate futures and creating exchange for small and medium enterprises, its Chairman C B Bhave said at the annual general meeting of Assocham here.     

"Today, regulators have to see that our markets are as complete as it could be...In the next three months, you will see the start of exchange traded currency futures in this country," he said.     

To a question from the floor whether Indian markets are prepared for currency futures, Bhave said, "I think our market is ready for it."     

He said currency futures are already allowed in Over-The- Counter (OTC) market.     

"It is not that we are not exposed to it at all. The attempt of Sebi and the central bank is to create exchange-traded currency futures as they are far easier to be regulated and far easier to contain risks than OTC market," he added.     

According to an RBI-Sebi panel's report on currency futures, exchange traded futures as compared to OTC forwards serve the same economic purpose, yet differ in fundamental ways.

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