We may allow REITs: Bhave

India will probably allow real estate investment trusts in its financial markets after implementing a stock lending and borrowing program and currency futures trading, the country's capital market regulator said.

The Securities & Exchange Board of India is working with the government and central bank to introduce currency futures that will boost the range of financial instruments available for companies and investors to guard against exchange-rate fluctuations, said C.B. Bhave, chairman of the regulator.

"The development of new exchange-traded products are necessary for the growth of our markets," Bhave told delegates attending the India-Asia Investment Forum in Singapore via video conference.

Real estate investment trusts "will be a little later than the stock lending and borrowing scheme and the currency futures".

Currency futures are exchange-traded derivatives, which allow investors to sell or buy a currency on a future date at a fixed price. The regulator will announce details of the stock lending and borrowing program soon, Bhave said.