The Reserve Bank of India today placed on its website the Report of the Internal Group on Currency Futures for public comments. The Working Group had been set up following an announcement in the Annual Policy Statement for 2007-08 to suggest a suitable framework to operationalise the proposal to introduce currency futures in line with the current legal and regulatory framework. The Reserve Bank had, on October 30, 2007 announced in its Mid term Review of the Annual Policy that it would release the draft report for comments (para 136).
         
Based on the discussions with market participants and the experiences drawn from international exchanges including those in the emerging market economies, the Group had listed various alternatives for introduction of currency futures, analysing the pros and cons of each option in the Indian context. This analysis was then presented to the Technical Advisory Committee (TAC) for Money, Foreign Exchange and Government Securities Markets in two specific meetings for expert views. The Report being released now also reflects the views expressed by the TAC.
         
Comments and suggestions on the Report may please be addressed to the Chief General Manager, Foreign Exchange Department, Reserve Bank of India, Central Office, Mumbai or through email.

G. Raghuraj
Deputy General Manager

Press Release: 2007-2008/675