India Imposes Restrictions on Currency Futures and Options Trading by Banks (Sunnyvale, CA) - The Indian Central Bank, the Reserve Bank of India (RBI) has barred banks from trading in currency futures and exchange traded currency options market in a bid to stem the declining value of the India Rupee (INR). This Futures and Options (F&O) trading restriction has come into effect immediately, however, banks are allowed to trade on the behalf of their respective clients, says Nair & Co. which provides international tax consulting for companies expanding overseas. The RBI justified the step, claiming it was based on current market conditions which led rupee to touch a record low of 61.21 against the dollar. It must be noted that rupee recovered slightly, and was trading at 60.13 to the dollar in today's trade. The Indian capital market regulator, the Securities and Exchange Board of India (SEBI), has issued a notice decreasing the exposure enjoyed by brokers and clients on currency derivatives, and in addition has also doubled the margins on dollar-rupee contracts. These moves are expected to discourage large scale currency market speculation which may be a contributing factor to the rupeeâ€™s further falls. For more information about doing business overseas or to know more about our International Expansion Services team please contact us. Subscribe to regular global tax compliance alerts from Nair & Co. International Business Guide (IBG) is our online platform for companies wishing to optimize their multinational operations and would like to have specific business information for doing business in a particular country - Click Here. Get the latest news releases and updates on international tax, HR, Finance, compliance and other legal news at Nair & Co. Industry Alerts. About Nair & Co. Nair & Co. provides you with your one touch outsourced finance, HR, legal and global tax compliance department for your international operations. If you are expanding abroad for the first time or increasing your global footprint, our turnkey solutions help you do so with minimal risk, stress and cost. We support 4000+ client operations in over 56 countries and have core offices in U.K., India, China, U.S., Japan and Singapore. Nair & Co. was named among the top 100 outsourcing services providers in the world by the International Association of Outsourcing Professionals (IAOP). Learn more at www.nair-co.com Read more on: International and Global Payroll Services
Published on Jul 12, 2013
Published on Jul 12, 2013
The Indian Central Bank, the Reserve Bank of India (RBI) has barred banks from trading in currency futures and exchange traded currency opti...