The National Stock Exchange (NSE) of India has been allowed for trading in currency future by the Security and Exchange Board of India. It will be the first exchange in India to start currency trading. NSE future trading is expected to launch on Aug 29.

In currency future trading, some recognized stock exchanges are allowed to buy or sell one currency against another on a specified future data. The price for future trading is fixed by selling or purchase of data. Only the firm USD-INR is covered under currency futures trade in India by the approval of RBI.

The contract for future trading would be worth $1,000 with the validity period of a month. The entire deal would be traded in Indian rupees at the reference rate of RBI on the last trading day.  

The future trade by NSE would prove beneficial to, banks, corporate sector and individual person. But foreign institutional investors (FIIs) and non-resident Indians (NRIs) are not permitted for future trading business. The regulatory body has set up National Securities Clearing Corporation (NSCCL) as an independent entity, for trade clearing and risk management.