How to set-up a Currency Futures market in India?

RBI has released a very nicely done report on starting a Currency Futures Market in India. The press release is here and the report is here.

Incidentally SEBI proposed (SEBI press release is here) launching certain derivatives in India. The release also mentioned about currency futures. Now currency is in the domain of RBI and stock exchanges under SEBI, so in case currency futures are going to be launched on existing stock exchanges, it would have been interesting.

But this RBI report has put a stop on all the possible speculations and the report suggests that RBI is going to be the sole of regulator of currency futures.

I was also wondering whether RBI rushed the report after SEBI’s initiative. But RBI had already mentioned in the Mid-term Monetary Policy 2007 that RBI would put the report on currency futures in public domain on Nov., 15, 2007. So, no problems there as well.

Ok, now to the main point. I have just taken a quick glance of the report and it looks like a very good one. It explains the working of currency futures market and the nitty grtitties in a very simple language. The experts would be out with the criticisms on the report and I am no expert on the subject. I will try and post their comments if any.

But, the report definitely gives you a format for such kinds of  studies. Highly recommended reading.


12 Responses to “How to set-up a Currency Futures market in India?”

  1. Sangeeta Says:

    can you explain in detail about currency trading. Your site is quite useful. Please write in detail about currency future.

  2. Amol Agrawal Says:

    Thanks for your comments. The report on currency future is a detailed one and explains all the concepts and mechanisms in fair detail. Reading the report would certainly be very helpful.

  3. pratiksha Says:

    currency future market in India its really usefull topic which everyone has to read atleast onces.latest update on this topic please provide on mail Id. as every one r indirectly connected, evryone should know about it.

  4. shashi ranjan Says:

    When it will start ? Presently It will be good for RBI to allow SEBI to start Currency Future Trading.

  5. kunal rawat Says:

    The report is certainly a detailed one which gives a conceptual clarity about how would the new dimensions of currency futures would be set up n india,your site is doing a great job by providing useful data amd information about the same,but i expected certain more information about the working patterns or say the deravative transactions of currency futures as to how it would work and executed in the above report that has been stated by you with context to rbi.
    i am a finance management student carring research on currency futures in india and its working,if you can help me with some relevant data it would be a great mail id is kunal a lot

  6. Shashi Ranjan Says:

    I think, it is disappointing for those who are interested to work full flazed in currency market. Government should star with EUR-USD, GBP-USD and USD- YEN. It is most demanding and volatile currency.

    Thanking you

  7. Amol Agrawal Says:

    Shashi, I understand your enthusiasm but I think that is the way to go. First start in the broadest market (which is INR-USD) and then expand to other currencies.

  8. pushpa Says:

    currency furute is a nice topic. i m thinking to do my accademic project entitling curency future…. would u plz send some more information abt this…

  9. bhawna Says:

    hiiiiiiiiii….thanx 4 d gr8 info.
    would u plz furnish me wid liltle more details as on questions like
    1why sebi introduced currency futures in india?
    2. how is d transcation settled
    mil at
    thanx a lot

  10. sheetu bhat Says:

    plz mail me more about currency future market in india?

  11. Priya Arora Says:

    Thank u so much mr. Aggarwal for ur knowledge… well it is really an interesting topic to search & read upon.. i wud b highly obliged if u can help me in preparing a project report on currency futures with a lil more detail on it..
    any body else having any project report on the topic pls mail me as reference at–


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