Mumbai: Close on the heels of the introduction of exchange traded currency futures in the country, market regulator Securities and Exchange Board of India (SEBI) is planning the introduction of exchange traded interest rate futures and rupee-yen and rupee-euro futures to expand the derivatives market.

SEBI is also looking into the issue of whether or not non-resident Indians (NRIs) and FIIs should be allowed in currency futures trade.
 
The regulator is also studying options to allow foreign companies to raise funds in India and get listed. SEBI also has sought disclosure of the status of all pending open offer applications by companies.

Reports quoting SEBI chairman CB Bhave said the interest rate futures will be launched soon.

''We are studying whether to allow NRIs and FIIs to participate in currency futures. We are also studying other currency contracts like a rupee-euro or a rupee-yen to be introduced. We are studying to allow foreign companies to raise money in India and list in Indian stock exchanges,''  Bhave told CNBC TV18 in an interview.

While there is a need to make progress in terms of satisfying all aspects of market, Bhave said, that all the listed companies will have to follow Sebi norms even if the new Companies Bill proposes 33 per cent independent directors.

Bhave said SEBI will soon finalise the terms and conditions on which the small and medium enterprises exchange will be formed very soon.  

The primary market advisory committee will discuss whether IPO grading has worked, in its upcoming meeting. He said there was a misuse of preferential allotment forcing SEBI to come out with guidelines. ''We are not allowing allotments to promoters. However future changes in these guidelines cannot be ruled out,'' Bhave said. 

SEBI plans to allow trading in exchange traded interest rate futures by December-January, a move which will help banks and FIIs manage interest rate risks.

''Exchange traded interest rate futures will be permitted by December-January, latest by January," SEBI whole-time member T C Nair said.

Initially, these futures contracts would be based on 10-year government bond yield, which should be settled by physical delivery.

An RBI-appointed technical panel had recently recommended the introduction of futures contracts, suggesting that as market evolves, exchanges may consider introducing contracts on various other government securities and had sought public comments.

The group had also recommended that these products be exempted from securities transactions tax to ensure symmetry between cash market in government and other securities and interest rate futures.

Meanwhile, SEBI has announced the list of Self Certified Syndicate Banks under the Applications Supported by Blocked Amount (ASBA) process for initial pubic offers.  As of date, 57 banks have registered with SEBI as bankers to an issue under the SEBI (Bankers to an Issue) Regulations, 1994.

All these banks are eligible to act as Self Certified Syndicate Banks for the purpose of ASBA subject to their submitting a self certification to SEBI, inter-alia certifying that they have undertaken the mock trial run of their systems with the stock exchange(s) and registrar(s) and have satisfied themselves that they have adequate systems/infrastructure in place at their controlling branch/designated branches to fulfill their responsibilities/obligations as envisaged in the ASBA process within the time lines specified therein, SEBI said.