The Reserve Bank of India (RBI) is mulling at easing restrictions on the forex futures market once stability improves in the foreign exchange market. 'Once stability improves in the forex market, India’s Apex Bank will look at the whole gamut of futures market,' RBI Deputy Governor H. R. Khan said on the sidelines of an event.
Illustrating the same, the deputy governor said, although there was requirement of documentation for the underlying in the OTC (over-the-counter) market, but after easing restrictions, the documentation requirement for certain small values underlying could be done away with.
Additionally, he also unveiled that RBI was is in talks with Securities and Exchange Board of India (SEBI) on making the dollar-rupee OTC and futures market trades on a delivery basis. Further, he also opined that it would be best to harmonize both the OTC and futures market, possibly with both being delivery-based.
Meanwhile, Indian rupee is currently trading at 61.93, weaker by 49 paise from its previous close of 61.44 on Friday. The currency, so far in the day has touched a high and low of 62.00 and 61.52 respectively.
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