Trading in Currency Futures permitted on Indian Stock Exchanges

The RBI and SEBI have jointly published guidelines for trading in currency futures on Indian stock exchanges yesterday. This would help further widen the derivative markets in India – While currently only trading in INR-USD futures is permitted, it may be further expanded at a later stage.

A currency future is a standardised foreign exchange derivative contract traded on a recognized stock exchange to buy or sell one currency against another on a specified future date, at a price specified on the date of contract. It does not include a forward contract. For more details, see the notification at the RBI website (www.rbi.org.in)

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GauriManglik

2 comments

  • Hi,Would you know the income tax rules/payable on income generated from currency futures trading.I've recently commenced and would like to be wary of what I'm stepping in to.Was informed by the futures' website that annual profits of USD 25000 and under were not taxable.Is this true?If so,are you aware of any RBI(FEMA) rule I could look up?
    Thank you.
    C.Kartik

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