There might finally be some liberalisation of the Indian FX futures market, if industry site FOI is to be believed. Currently foreigners are banned from participating, however, a report published last week by the Indian Department of Economic Affairs and Ministry of Finance’s working group on foreign investment concluded that this was “hard to justify”.
The regulation certainly runs counter to the general global push to move financial products on to exchanges, as the report says: “The present arrangement, where foreign investors support the non-transparent currency forward market and are blocked from using the transparent currency futures market, is an anomaly.
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