Norms for currency futures likely to be relaxed

Mumbai, Oct 1 (IANS) Market regulator Securities and Exchange Board of India (Sebi) and the Reserve Bank of India (RBI) are in discussions to relax norms in the currency trading segment, said a top Sebi official here Wednesday.

'RBI and Sebi are working together bring about some relaxations in currency trading practices,' Sebi chairman C.B. Bhave told reporters after inaugurating the currency futures trading on BSE.

Earlier, in August, the National Stock Exchange (NSE) had started the exchange-traded currency futures for the first time in the country. Leading commodity bourse Multi Commodity Exchange of India (MCX) is also expected to initiate the facility in future.

The regulators are trying to ensure transparency and timely settlement of transactions in the system, which are key ingredients for a healthy financial system in the country, Bhave said.

He hoped currency futures will help small and medium enterprises engaged in international trade to hedge their risks against fluctuations in currency values.