Currency futures set for debut

A currency futures contract is one where two parties agree to buy and sell the currency at a future date at a predetermined price. Indians may soon be allowed to participate in exchange-traded currency futures instruments that will allow them to take positions on the future value of the rupee. The Central Bank released a report by an internal panel, which has recommended the introduction of currency futures to be traded on dedicated exchanges. The recommendations could spark a turf war as it proposes that RBI will retain the right to regulate all aspects of trade even though securities exchanges are the domain of SEBI.