MCX gets SEBI approval for currency futures trading

Mumbai: The Multi Commodity Exchange of India (MCX) has received approval from capital market regulator Securities and Exchange Board of India (SEBI) to start futures trading in currency (currency derivatives).

''MCX has received SEBI's approval for its subsidiary 'MCX Stock Exchange Ltd', which had applied for currency derivatives,'' its promoter Financial Technologies said in a filing with the Bombay Stock Exchange.

MCX is a unit of Financial Technologies Ltd and one of the main commodity exchanges in the country.

At present, the National Stock Exchange (NSE) is providing the facility for trading in currency derivatives.

Last month, a joint panel of RBI and SEBI had decided to introduce currency futures in stock exchanges to manage volatility in the value of rupee.

Currency futures are transferable future contracts that specifies the price at which a specified currency can be bought or sold at a future date.