MUMBAI: India announced steps to deepen its foreign exchange market by allowing local residents trade currency derivatives contracts popular in the offshore market, according to the central bank.
Local lenders with a so-called IFSC Banking Unit — basically having a unit in the International Financial Services Centre currently in GIFT City in the western state of Gujarat — will be permitted to offer non-deliverable forwards to residents onshore, Reserve Bank of India Governor Shaktikanta Das said in his policy speech Thursday. That will enable banks to offer enhanced currency hedging opportunities to their customers.
