Rupee-dollar derivatives set to enter stock exchanges in GIFT City IFSC

At present, cross-currency trades are permitted on the International Exchange (INX) floated by the BSE and NSE IFSC exchange situated in GIFT City IFSC

Rupee-dollar derivatives are set to enter stock exchanges established by the BSE and NSE in the International Financial Service Center (IFSC) at GIFT City in Gandhinagar, Gujarat after the government published a gazette notification amending the Foreign Exchange Management Act (FEMA) thereby paving the way for rupee derivatives at exchanges in GIFT City.

The Reserve Bank of India (RBI) is now expected to issue detailed regulations for the same. The purpose for this facility is to bring the offshore rupee market, onshore. As of now huge rupee trades take place in overseas no-deliverable forwards (NDFs).

At present, cross-currency trades are permitted