NSE gets Sebi's go ahead to launch cross currency derivatives

Leading bourse National Stock Exchange (NSE) today received approval from markets regulator Sebi to introduce cross currency derivatives, a move that will give investors direct exposure to foreign currencies.
Now, the exchange can introduce cross currency derivatives (future and options) on pairs such as Euro (EUR)-US Dollar (USD), Pound Sterling (GBP)-USD and USD-Japanese Yen (JPY), a NSE spokesperson told PTI.
The trading in such contracts would be available between 9:00 AM and 7:30 PM.
The decision will help in direct hedging of foreign currency exposures as well as improving liquidity in existing currency contracts.
"The Securities and Exchange Board of India (Sebi) through a letter dated February 20 has given NSE approval for introducing cross currency derivatives," he added.

Under the new contracts, stock brokers, domestic institutional investors, FPIs and clients, are allowed to take positions in the exchange traded cross-currency futures and option contracts.
Additionally, the exchange has also received permission to introduce option on EUR-INR. GBP-INR and JPY-INR in addition to existing USD-INR.
In Mach 2016, Sebi had allowed stock exchanges to introduce cross-currency futures and exchange traded cross-currency option contracts in multiple currency pairs.