The Reserve Bank of India (RBI) and the Security and Exchange Board of India (SEBI) has approved new guidelines for currency future. The banks would participate in the forex future after the approval of RBI. The new guidelines would be effective from August 6.

The currency exchange will be allowed in US dollars or in Indian Rupees. The RBI will issue future guidelines from time to time on currency exchange issue. The banks with net worth of Rs 500 crores and minimum CRAR of 10 per cent are to be considered eligible for future trade.

According to the new guidelines of Currency Futures (Reserve Bank) Directions, 2008, only Indian citizens are allowed to participate in future trade on the basis of specified contract. The apex bank has fixed price of each contract at $1000. The entire process of statements and quotations would be mentioned in Indian currency. The Reserve bank will issue guidelines for settlement price for all contracts. The contract will be valid for a year.   

The Bombay Stock Exchange (BSE), National Stock Exchange (NSE) and Multi Commodity Exchange (MCX) are recognized as prime stock markets for future trade. The eligibility detail would be issued by SEBI in a short time. The three firms NSE, MCX and a consortium of HDFC, Kotak and SBI are expected to launch future trade services after getting nod of RBI.