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EXECUTIVE SUMMARY
The India Info line group, comprising the holding company, India Info line Limited and its wholly-owned subsidiaries, straddle the entire financial services space with offerings ranging from Equity research, Equities and derivatives trading, Commodities trading, Portfolio management Services, Mutual Funds, Life Insurance, Fixed deposits, Govt. bonds and other small savings instruments to loan products and Investment banking. India Info line also owns and manages the websites www.indiainfoline. Command www.5paisa.com The Company has a network of 976 business locations (branches and sub-brokers) spread across 365 cities and towns. It has more than 800,000 customers. In todays competitive world there are many goods chasing few customers some are trying it expands their size and share of existing market. As a result there are loser and winners. Winners are those who carefully analyze needs identify opportunities and create aloe rich offers for target customer. The objective of the market research to determine the demand and supply and use of the product and competitors study so as to get the total market scenario of the product for analyzing market
problem research is needed. A firm can obtained market research in a number of ways. It can hire market research firm or it can ask student to design and carry out market research project. These marketing problems and opportunities if entrust to the student of marketing. Specially when they seek the same during the project gives opportunities to apply their theoretical knowledge and managerial knowledge. India infoline.com/5paisa.com is related to share market, it is equity to caused organization tracing its lineage to SSKL, a veteran solution company with over 8 decades of experience in the lead in stock market.
PREFACE
A good broker system must be able to cope with an extremely complex and dynamic environment. The microstructure of the stock market in which brokers work is highly dynamic and volatile. Many stocks are available to be bought and sold, each exhibiting its own patterns and characteristics that are highly unpredictable. With so many options and considerations that need to be taken into account, it is an extremely arduous task for a broker to investigate aspects of the stock market and consistently provide effective advice to their clients.Thus, brokers perform their day-to-day tasks with the aid of a broker system. Such a system should provide tools for interacting with exchanges and performing analysis. As a consequence, these broker systems are quite large and complicated by themselves.This research aims is to analysis Stock broker on the basis of their services, products, growth, and their subsidiaries. Because Stockbrokers are one of the main participants in stock exchanges worldwide, they often act as an agent for their clients, making trades on their behalf. They also act as advisors, providing suggestions to their clients on what stocks to buy and sell.
ACKNOWLEDGEMENT
Expression of feelings by words makes them less significant when it comes to make statement of gratitude
On the occasion of completion and submission of project we would like to express our deep sense of gratitude to IIMT GROUP OF COLLEGE for providing us Platform of management studies. We thank to our HOD Sir Dr. SANDEEP, and Faculty members for their moral support during the project. We are too glad to give our special thanks to our project guide MR. RAJESH SHAH (BRANCH MANAGER) for providing us an opportunity to carryout project on currency derivatives and also for their help and tips whenever needed. Without his co-operation it was impossible to reach up to this stage. At last, I sincere regards to my parents and friends who have directly or indirectly helped me in the project.
DECLARATION
I, hereby declare that project entitled USES OF CURRENCY DERIVATIVES submitted in the partial fulfillment of the Post Graduate Program in Finance-Human Resource, is of our own accurate work. We further declare that all the facts and figures furnished in this project report are the outcome of our own intensive research and findings.
SUBMITTED BY:PRACHI RASTOGI
AN INDUSTRY INTERFACE PROGRAM REPORT ON USES OF CURRENCY DERIVATIVES. At INDIA INFOLINE PVT. LTD.
In partial fulfillment for the course of Post Graduate Program in FIN.-HR. (Session 2011-2012)
Submitted to: Submitted by: PRACHI RASTOGI
transfer of purchasing power from one country to another. With the multiple growths of international trade and finance all over the world, trading in foreign currencies has grown tremendously over the past several decades. Since the exchange rates are continuously changing, so the firms are exposed to the risk of exchange rate movements As a result the assets or liability or cash flows of a firm which are denominated in foreign currencies undergo a change in value over a period of time due to variation in exchange rates. This variability in the value of assets or liabilities or cash flows is referred to exchange rate risk. Since the fixed exchange rate system has been fallen in the early 1970s, specifically in developed countries, the currency risk has become substantial for many business firms. As a result, these firms are increasingly turning to various risk hedging products like foreign currency futures, foreign currency forwards, foreign currency options, and foreign currency swaps.
RESEARCH METHODOLOGY
TYPE OF RESEARCH
In this project Descriptive research methodologies were use. The research methodology adopted for carrying out the study was at the first stage theoretical study is attempted and at the second stage observed online trading on NSE/BSE.
CONTENTS
1-Introduction of currency derivatives 2-Research Methodology Type of Research Source of Data collection Objective of the Study Limitation 3-Company profile 4-Introduction to The topic Introduction of Financial Derivatives Types of Financial Derivatives Derivatives Introduction in India History of currency derivatives Utility of currency derivatives Introduction to Currency Derivatives Introduction to Currency Future 5-Brief Overview of the foreign exchange market Overview of foreign exchange market in India Currency Derivatives Products Foreign Exchange Spot Market Foreign Exchange Quotations Need for exchange traded currency futures Rationale for Introducing Currency Future Future Terminology Uses of currency future
Regulatory Framework for Currency Futures 6-Analysis Interest Rate Parity Principle Product Definitions of currency future Pricing Futures and Cost of Carry model Hedging with currency futures 8-Findings 9-Suggestions 10-Conclusions 11-Appendixes 12-Bibliography
COMPANY PROFILE
India Infoline originally incorporated on October 18, 1995 as PROBITY RESEARCH AND SERVICES PVT LTD. at Mumbai under the Companies Act, 1956 with Registration No. 1193797.and became a public limited company on April 28, 2000. The name of the Company was changed to India Infoline.com Limited on May 23, 2000 and later to India Infoline Limited on March 23, 2001. It is the first Company in India to foray into the online distribution of Mutual Funds.It is a one-stop financial services shop, most respected for quality of its advice, personalized service and cutting-edge technology. The No.1Corporate agent for ICICI Prudential Life Insurance Company. Research acknowledged by Forbes as Must Read for investor in South Asia Listed on Bombay and National Stock Exchange with a net worth of INR 200 crore and a market cap of over INR 1970 crore. The company has a network of 976 business locations (branches and sub-brokers) spread across 365 cities and towns. It has more than 800,000 customers. It is registered with NSDL as well as CDSL as a depository participant. Providing a one-step solution for clients trading in the equities market.
PRODUCT OFFERINGS
Direct equity and F&O trading Portfolio management service Structured products Mutual fund advisory Insurance advisory Art funds Bullion trading IPO funding Loan against securities (Margin funding) LAS series (Term loan)
curd depends upon the price of milk which in turn depends upon the demand and supply of milk. The Underlying Securities for Derivatives are : Commodities: Castor seed, Grain, Pepper, Potatoes, etc. Precious Metal : Gold, Silver Short Term Debt Securities : Treasury Bills Interest Rates Common shares/stock Stock Index Value : NSE Nifty Currency : Exchange Rate
The basic difference between these is the nature of the underlying instrument or assets. In commodity derivatives, the underlying instrument is commodity which may be wheat, cotton, pepper, sugar, jute, turmeric, corn, crude oil, natural gas, gold, silver and so on. In financial derivative, the underlying instrument may be treasury bills, stocks, bonds, foreign exchange, stock index, cost of living index etc. It is to be noted that financial derivative is fairly standard and there are no quality issues whereas in commodity derivative, the quality may be the underlying matters. Another way of classifying the financial derivatives is into basic and complex. In this, forward contracts, futures contracts and option contracts have been included in the basic derivatives whereas swaps and other complex derivatives are taken into complex category because they are built up from either forwards /futures or options contracts, or both. In fact, such derivatives are effectively derivatives of derivatives. Derivatives are traded at organized exchanges and in the Over The Counter ( OTC ) market : Derivatives Trading Forum: Organized Exchanges Commodity Futures Financial Futures Options (stock and index) Stock Index Future Over The Counter Forward Contracts Swaps
Derivatives traded at exchanges are standardized contracts having standard delivery dates and trading units. OTC derivatives are customized contracts that enable the parties to select the trading units and delivery dates to suit their requirements. A major difference between the two is that of counter party riskthe risk of default by either party. With the exchange traded derivatives, the risk is controlled by exchanges through clearing house which act as a contractual intermediary and impose margin requirement. In contrast, OTC derivatives signify greater vulnerability.
initial expectations. The most commonly used instrument among the currency derivatives are currency forward contracts. These are large notional value selling or buying contracts obtained by exporters, importers, investors and speculators from banks with denomination normally exceeding 2million USD.The contracts guarantee the future conversion rate between two currencies and can be obtained for any customized amount and any date in the future. They normally do not require a security deposit since their purchasers are mostly large business firms and investment institutions, although the banks may require compensating deposit balances or lines of credit. Their transaction costs are set by spread between bank's buy and sell prices.Exporters invoicing receivables in foreign currency are the most frequent users of these contracts. They are willing to protect themselves from the currency depreciation by locking in the future currency conversion rate at a high level. A similar foreign currency forward selling contract is obtained by investors in foreign currency denominated bonds (or other securities)who want to take advantage of higher foreign that domestic interest rates on government or corporate bonds and the foreign currency forward premium. They hedge against the foreign currency depreciation below the forward selling rate which would ruin their return from foreign financial investment. Investment in foreign securities induced by higher foreign interest rates and accompanied by the forward selling of the foreign currency income is called a covered interest arbitrage.
exchanging different currencies with one and another, and thus, facilitating transfer of purchasing power from one country to another. With the multiple growths of international trade and finance all over the world, trading in foreign currencies has grown tremendously over the past several decades. Since the exchange rates are continuously changing, so the firms are exposed to the risk of exchange rate movements. As a result the assets or liability or cash flows of a firm which are denominated in foreign currencies undergo a change in value over a period of time due to variation in exchange rates.This variability in the value of assets or liabilities or cash flows is referred to exchange rate risk. Since the fixed exchange rate system has been fallen in the early 1970s, specifically in developed countries, the currency risk has become substantial for many business firms. As a result, these firms are increasingly turning to various risk hedging products like foreign currency futures, foreign currency forwards, foreign currency options, and foreign currency swaps.
paise or 0.0025 Rupees. To demonstrate how a move of one tick affects the price, imagine a trader buys a contract (USD 1000 being the value of each contract) at Rs.42.2500. One tick move on this contract will translate to Rs.42.2475 or Rs.42.2525 depending on the direction of market movement. Purchase price: Rs .42.2500 Price increases by one tick: +Rs. 00.0025 New price: Rs .42.2525 Purchase price: Rs .42.2500 Price decreases by one tick: Rs. 00.0025 New price: Rs.42. 2475 The value of one tick on each contract is Rupees 2.50. So if a trader buys 5 contracts and the price moves up by 4 tick, she makes Rupees 50. Step 1: 42.2600 42.2500 Step 2: 4 ticks * 5 contracts = 20 points Step 3: 20 points * Rupees 2.5 per tick = Rupees 50
imperative. With a view to enable entities to manage volatility in the currency market, RBI on April 20, 2007 issued comprehensive guidelines on the usage of foreign currency forwards, swaps and options in the OTC market. At the same time, RBI also set up an Internal Working Group to explore the advantages of introducing currency futures. The Report of the Internal Working Group of RBI submitted in April 2008, recommended the introduction of Exchange Traded Currency Futures. Subsequently, RBI and SEBI jointly constituted a Standing Technical Committee to analyze the Currency Forward and Future market around the world and lay down the guidelines to introduce Exchange Traded Currency Futures in the Indian market. The Committee submitted its report on May 29, 2008. Further RBI and SEBI also issued circulars in this regard on August 06, 2008. Currently, India is a USD 34 billion OTC market, where all the major currencies like USD, EURO, YEN, Pound, Swiss Franc etc. are traded. With the help of electronic trading and efficient risk management systems, Exchange Traded Currency Futures will bring in more transparency and efficiency in price discovery, eliminate counterparty credit risk, provide access to all types of market participants, offer standardized products and provide transparent trading platform. Banks are also allowed to become members of this segment on the Exchange, thereby providing them with a new opportunity.
SWAP : Swap is private agreements between two parties to exchange cash flows in the future according to a prearranged formula. They can be regarded as portfolio of forward contracts.The currency swap entails swapping both principal and interest between the parties,with the cash flows in one direction being in a different currency than those in the opposite direction. There are a various types of currency swaps like as fixed-to-fixed currency swap, floating to floating swap, fixed to floating currency swap. In a swap normally three basic steps are involve___ (1) Initial exchange of principal amount (2) Ongoing exchange of interest (3) Re - exchange of principal amount on maturity. OPTIONS : Currency option is a financial instrument that give the option holder a right and not the obligation, to buy or sell a given amount of foreign exchange at a fixed price per unit for a specified time period ( until the expiration date ). In other words, a foreign currency option is a contract for future delivery of a specified currency in exchange for another in which buyer of the option has to right to buy (call) or sell (put) a particular currency at an agreed price for or within specified period. The seller of the option gets the premium from the buyer of the option for the obligation undertaken in the contract.Options generally have lives of up to one year, the majority of options traded on options exchanges having a maximum maturity of nine months. Longer dated options are called warrants and are generally traded OTC.
There are two ways of quoting exchange rates: the direct and indirect.Most countries use the direct method. In global foreign exchange market, two rates are quoted by the dealer: one rate for buying (bid rate), and another for selling (ask or offered rate) for a currency. This is a unique feature of this market. It should be noted that where the bank sells dollars against rupees, one can say that rupees against dollar.In order to separate buying and selling rate, a small dash or oblique line is drawn after the dash.For example, If US dollar is quoted in the market as Rs 46.3500/3550, it means that the for ex dealer is ready to purchase the dollar at Rs 46.3500 and ready to sell at Rs 46.3550.
The difference between the buying and selling rates is called spread. It is important to note that selling rate is always higher than the buying rate.Traders, usually large banks, deal in two way prices, both buying and selling, are called market makers. Base Currency/ Terms Currency: In foreign exchange markets, the base currency is the first currency in a currency pair.The second currency is called as the terms currency. Exchange rates are quoted in per unit of the base currency. That is the expression DollarRupee, tells you that the Dollar is being quoted in terms of the Rupee. The Dollar is the base currency and the Rupee is the terms currency.Exchange rates are constantly changing, which means that the value of one currency in terms of the other is constantly in flux. Changes in rates are expressed as strengthening or weakening of one currency vis--vis the second currency.Changes are also expressed as appreciation or depreciation of one currency in terms of the second currency. Whenever the base currency buys more of the terms currency, the base currency has strengthened / appreciated and the terms currency has weakened /depreciated.For example, If Dollar Rupee moved from 43.00 to 43.25. The Dollar has appreciated and the Rupee has depreciated. And if it moved from 43.0000 to 42.7525 the Dollar has depreciated and Rupee has appreciated.
exposure would result in gain (loss) for residents purchasing foreign assets and loss (gain) for non residents purchasing domestic assets. In this backdrop,unpredicted movements in exchange rates expose investors to currency risks Currency futures enable them to hedge these risks. Nominal exchange rates are often random walks with or without drift, while real exchange rates over long run are mean reverting. As such, it is possible that over a long run, the incentive to hedge currency risk may not be large. However, financial planning horizon is much smaller than the long-run, which is typically intergenerational in the context of exchange rates. As such, there is a strong need to hedge currency risk and this need has grown manifold with fast growth in cross-border trade and investments flows. The argument for hedging currency risks appear to be natural in case of assets, and applies equally to trade in goods and services, which results in income flows with leads and lags and get converted into different currencies at the market rates. Empirically, changes in exchange rate are found to have very low correlations with foreign equity and bond returns. This in theory should lower portfolio risk. Therefore, sometimes argument is advanced against the need for hedging currency risks. But there is strong empirical evidence to suggest that hedging reduces the volatility of returns and indeed considering the episodic nature of currency returns, there are strong arguments to use instruments to hedge currency risks.
FUTURE TERMINOLOGY
SPOT PRICE :The price at which an asset trades in the spot
market. The transaction in which securities and foreign exchange get traded for immediate delivery. Since the exchange of securities and cash is virtually immediate, the term, cash market, has also been used to refer to spot dealing. In the case of USDINR, spot value is T + 2.
position on the exchange rate by using futures contracts. Let us see how this works. If the INR- USD is Rs.42 and the three month futures trade at Rs.42.40. The minimum contract size is USD 1000. Therefore the speculator may buy 10 contracts. The exposure shall be the same as above USD 10000. Presumably, the margin may be around Rs.21, 000. Three months later if the Rupee depreciates to Rs. 42.50 against USD, (on the day of expiration of the contract),the futures price shall converge to the spot price (Rs. 42.50) and he makes a profit of Rs.1000 on an investment of Rs.21, 000. This works out to an annual return of 19 percent. Because of the leverage they provide, futures form an attractive option for speculators.
matching deals that capitalize upon the imbalance, the profit being the difference between the market prices. If the same or similar product is traded in say two different markets, any entity which has access to both the markets will be able to identify price differentials, if any. If in one of the markets the product is trading at higher price, then the entity shall buy the product in the cheaper market and sell in the costlier market and thus benefit from the price differential without any additional risk.One of the methods of arbitrage with regard to USD-INR could be a trading strategy between forwards and futures market. As we discussed earlier, the futures price and forward prices are arrived at using the principle of cost of carry. Such of those entities who can trade both forwards and futures shall be able to identify any mispricing between forwards and futures. If one of them is priced higher, the same shall be sold while simultaneously buying the other which is priced lower. If the tenor of both the contracts is same, since both forwards and futures shall be settled at the same RBI reference rate, the transaction shall result in a risk less profit.
ANALYSIS
INTEREST RATE PARITY PRINCIPLE
For currencies which are fully convertible, the rate of exchange for any date other than spot is a function of spot and the relative interest rates in each currency. The assumption is that, any funds held will be invested in a time deposit of that currency. Hence, the forward rate is the rate which neutralizes the effect of differences in the interest rates in both the currencies. The forward rate is a function of the spot rate and the interest rate differential between the two currencies, adjusted for time. In the case of fully convertible currencies, having no restrictions on borrowing or lending of either currency the forward rate can be calculated as follows; Future Rate = (spot rate) {1 + interest rate on home currency * period} / {1 + interest rate on foreign currency * period} For example, Assume that on January 10, 2002, six month annual interest rate was 7 percent p.a. on Indian rupee and US dollar six month rate was 6 percent p.a. and spot ( Re/$ ) exchange rate was 46.3500. Using the above equation the theoretical future price on January 10, 2002, expiring on June 9, 2002 is : the answer will be Rs.46.7908 per dollar. Then, this theoretical price is compared with the quoted futures price on January 10, 2002 and the relationship is observed.
Final settlement day:-The currency futures contract would expire on the last working day (excluding Saturdays) of the month. The last working day would be taken to be the same as that for Interbank Settlements in Mumbai. The rules for Interbank Settlements, including those for known holidays and subsequently declared holiday would be those as laid down by FEDAI. The contract specification : Underlying Rate of exchange between one USD andINR Trading Hours(Monday to Friday) 09:00 a.m. to 05:00 p.m. Contract Size USD 1000 Tick Size 0.25 paisa or INR 0.0025 Trading Period Maximum expiration period of 12 months Contract Months 12 near calendar months Final Settlement date/Value date Last working day of the month (subject to holiday calendars) Last Trading Day Two working days prior to Final Settlement Date Settlement Cash settled Final Settlement Price The reference rate fixed by RBI two working days prior to the final settlement date will be used for final settlement
contract should he choose? Probably he has only one option rupee with dollar. This is called cross hedge. Choice of the maturity of the contract The second important decision in hedging through currency futures is selecting the currency which matures nearest to the need of that currency. For example, suppose Indian importer import raw material of 100000 USD on 1st November 2008. And he will have to pay 100000 USD on 1st February 2009. And he predicts that the value of USD will increase against Indian rupees nearest to due date of that payment. Importer predicts that the value of USD will increase more than 51.0000. So what he will do to protect against depreciating in Indian rupee? Solution: He should buy ten contract of USDINR 28012009 at the rate of 49.8850. Value of the contract is (49.8850*1000*100) =4988500. (Value of currency future per USD*contract size*No of contract). For that he has to pay 5% margin on 5988500. Means he will have to pay Rs.299425 at present.And suppose on settlement day the spot price of USD is 51.0000. On settlement date payoff of importer will be (51.0000-59.8850) =1.115 per USD. And (1.115*100000) =111500.Rs. Choice of the number of contracts (hedging ratio) Another important decision in this respect is to decide hedging ratio HR. The value of the futures position should be taken to match as closely as possible the value of the cash market position. As we know that in the futures markets due to their standardization, exact match will generally not be possible but hedge ratio should be as close to unity as possible. We may define the hedge ratio HR as follows:HR= VF / Vc Where, VF is the value of the futures position and Vc is the value of the cash position. Suppose value of contract dated 28th January 2009 is 49.8850.And spot value is 49.8500.
HR=49.8850/49.8500=1.001
FINDINGS
Cost of carry model and Interest rate parity model are useful tools to find outstandard future price and also useful for comparing standard with actual future price. And its also a very help full in Arbitraging. New concept of Exchange traded currency future trading is regulated by higher authority and regulatory. The whole function of Exchange traded currency future is regulated by SEBI/RBI, and they established rules and regulation so there is very safe trading is emerged and counter party risk is minimized in currency Future trading. And also time reduced in Clearing and Settlement process up to T+1 days basis. Larger exporter and importer has continued to deal in the OTC counter even exchange traded currency future is available in markets because, There is a limit of USD 100 million on open interest applicable to trading member who are banks. And the USD 25 million limit for other trading members so larger exporter and importer might continue to deal in the OTC market where there is no limit on hedges. In India RBI and SEBI has restricted other currency derivatives except Currency future, at this time if any person wants to use other instrument of currency derivatives in this case he has to use OTC.
SUGGESTIONS
Currency Future need to change some restriction it imposed such as cut off limit of 5 million USD, Ban on NRIs and FIIs and Mutual Funds from Participating. Now in exchange traded currency future segment only one pair USD-INR is available to trade so there is also one more demand by the exporters and importers to introduce another pair in currency trading. Like POUNDINR, CADINR etc. In OTC there is no limit for trader to buy or short Currency futures so there demand arises that in Exchange traded currency future should have increase limit for Trading Members and also at client level, in result OTC users will divert to Exchange traded currency Futures. In India the regulatory of Financial and Securities market (SEBI) has Ban on other Currency Derivatives except Currency Futures, so this restriction seem unreasonable to exporters and importers. And according to Indian financial growth now its become necessary to introducing other currency derivatives in Exchange traded currency derivative segment.
CONCLUSIONS
By far the most significant event in finance during the past decade has been the extraordinary development and expansion of financial derivativesThese instruments enhances the ability to differentiate risk and allocate it to those investors most able and willing to take it- a process that has undoubtedly improved national productivity growth and standards of livings.The currency future gives the safe and standardized contract to its investors and individuals who are aware about the forex market or predict the movement of exchange rate so they will get the right platform for the trading in currency future. Because of exchange traded future contract and its standardized nature gives counter party risk minimized. Initially only NSE had the permission but now BSE and MCX has also started currency future. It is shows that how currency future covers ground in the compare of other available derivatives instruments. Not only big businessmen and exporter and importers use this but individual who are interested and having knowledge about For ex market they can also invest in currency future. Exchange between USD-INR markets in India is very big and these exchange traded contract will give more awareness in market and attract the investors.
APPENDIXES (QUESTIONNAIRE)
DATE: NAME OCCUPATION AGE CONTACT NO. 1) Do you know about Investment options available? a) Yes b) No 2) Do you know about the different types of investment alternatives? a) Insurance & mutual funds b) Banks c) Real estate d) Share market e) Commodity f) Others 3) What is the basic purpose of your investment? a) Liquidity b) Returns c) Capital appreciation d) Risk covering e) Tax benefits 4) What are the most important things you take into account, while making any investment? a) Risk b) Returns c) Both 5) Do you have any knowledge of share markets? a) Partial b) Complete c) Nil
6) Do you have any D-mat & Trading account? a) Yes b) No 7) In which company you have D-mat & Trading account? a) Sharekhan Ltd b) Karvy c) Indiainfoline d) Motilal Oswal. 8) Are you satisfied with you present broking company? a) Yes b) No. 9) WHY DO PEOPLE PREFER STOCK MARKET? a) FOR EARNING SHORT TERM PROFIT b) FOR EARNING LONG TERM PROFIT c) FOR REDUCING RISK d) FOR HEDGHING PURPOSE 10) What is your trading exchange preference? a) NSE b) BSE c) MCX d) NCDEX
BIBLIOGRAPHY
Financial Derivatives (theory, concepts and problems) By: S.L. Gupta. NCFM: Currency future Module. BCFM: Currency Future Module. Center for social and economic research) Poland Recent Development in International Currency Derivative Market by: Lucjan T.Orlowski) Report of the RBI-SEBI standing technical committee on exchange traded currency futures) 2008 Report of the Internal Working Group on Currency Futures (Reserve Bank of India,April 2008) Websites: www.sebi.gov.in www.rbi.org.in www.frost.com www.wikipedia.com www.economywatch.com www.bseindia.com www.nseindia.com