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| Coccinielo: the rupee options market is
"going to get very deep and more
liquid" |
Rupee currency options have started trading for the
first time under new guidelines from the Reserve Bank of
India. The move comes as part of a series of efforts to
develop Indian derivatives markets.
Nine market-makers - five local and four foreign -
are permitted to sell the instruments. But hedge funds need
not get too excited - the new products have been tailored to
serve as a useful hedge against risk for local corporates
rather than as a speculative tool.
As Ravi Savur, head of structured products at market-maker
Citigroup in Mumbai, explains: "The central bank has taken the view
that local corporations should be allowed to be globally
competitive. They should be allowed to manage risk in the same way
as other companies overseas do." One year and many consultative
committee meetings later, the new cautious but effective options
product was launched on...
