Reserve Bank of India (RBI) issued directions for permitting Rupee derivatives (with settlement in foreign currency) to be traded in International Financial Services Centres (IFSCs). The central bank released directions u/s 45 W of the Reserve Bank of India Act, 1934 permitting Rupee derivatives (with settlement in foreign currency).
An announcement to this effect was made in Para 2 of the Statement on Developmental and Regulatory Policies dated October 04, 2019. Currency derivatives in any currency pair involving the Rupee or otherwise are permitted on recognised stock exchanges set up in IFSCs. Contracts in the Rupee shall be settled in a currency other than the Indian Rupee. The RBI also noted that any person resident outside India may undertake these derivative contracts.
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