Bombay Stock Exchange launches currency derivatives
Mumbai, Oct 1 : The Bombay Stock Exchange (BSE) launched its currency derivatives
segment in dollar-rupee currency futures on Wednesday in Mumbai.
Top officials of Security and Exchange Board of India (SEBI) said that in today's
business environment, organizations, irrespective of their nature of business face
currency risk.
They added that by the introduction of trading in currency derivatives, market, would
prove to be an excellent opportunity to hedge currency risk for the players.
C.B Bhave, chairman of SEBI congratulating the exchange on launching the currency
derivatives, assured the investors that both Reserve Bank of India (RBI) and SEBI are
monitoring the market.
"I have no doubt on the geniuses of the traders in Bombay. They will take this exchange
path. I congratulate BSE on starting this currency derivates platform. People have already
started demanding that their restrictions that have been put on currency trading should be
relaxed. RBI and SEBI are working together on monitoring what is happening. The exchange
is also taking note of the demands in the market place," said Bhave.
He added that discussions are on to bring about relaxation in the currency trading
norms.
With the introduction of the currency derivatives, participants would now no longer
have to depend on over-the-counter products such as forwards, swaps and options only to
hedge their currency risks.
Currency derivatives are used by many enterprises in international trade to hedge their
risks against fluctuations in currency prices.
--ANI
