The RBI and SEBI have jointly published guidelines for trading in currency futures on Indian stock exchanges yesterday. This would help further widen the derivative markets in India - While currently only trading in INR-USD futures is permitted, it may be further expanded at a later stage.
A currency future is a standardised foreign exchange derivative contract traded on a recognized stock exchange to buy or sell one currency against another on a specified future date, at a price specified on the date of contract. It does not include a forward contract. For more details, see the notification at the RBI website (www.rbi.org.in)