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RBI considers rupee futures exchange

RBI considers rupee futures exchange
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First Published: Fri, Aug 03 2007. 01 52 PM IST
Updated: Fri, Aug 03 2007. 01 52 PM IST
Mumbai: The Reserve Bank of India (RBI) plans to set up a separate currency futures exchange as it does not want such contracts to be traded on existing stock and commodity exchanges, the Business Standard said in an unsourced report on Friday.
The paper said the Reserve Bank of India (RBI) was concerned its regulatory powers on domestic foreign exchange would be diluted if the contracts were traded on the existing exchanges, which may affect its currency management.
A central bank spokeswoman was not immediately available for comment.
At present, India does not permit rupee futures trading as the local currency is not fully convertible. Local companies are banned from trading in rupee contracts on offshore exchanges, such as the one launched in Dubai in June.
The paper said the central bank was reluctant to let foreign investors trade rupee futures as they do not hedge a major part of its portfolio. The currency futures would be settled in rupees, it said.
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First Published: Fri, Aug 03 2007. 01 52 PM IST
More Topics: India | RBI | futures | rupee | Money Matters |