Bombay Stock Exchange launches currency derivativesOctober 1st, 2008 - 4:17 pm ICT by ANI
Mumbai, Oct 1 (ANI): 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)
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