By IANS,
Mumbai : It is expected that Indian banks and residents will be allowed to trade in foreign currency futures by the month-end, going by the new guidelines announced by the Indian central bank here Wednesday.
The guidelines finalized by the Reserve Bank of India (RBI) and market regulator Securities and Exchange Board of India (SEBI) said that only dollar-rupee contracts can be traded and the size of each contract would be $1,000.
The contracts shall be quoted and settled in Indian rupees and the maturity of the contracts shall not exceed 12 months, the guidelines said.
Banks can participate in the futures market with the permission of RBI and none “other than an Indian resident” shall participate in the currency futures market.
The gross open position of a trading member should not exceed 15 percent of open interest or $25 million and gross open position of any bank should not exceed 15 percent of open interest or $100 million.