By IANS,

Mumbai : Bombay Stock Exchange (BSE) has received "in-principle approval" from market regulator Securities and Exchange Board of India (SEBI) for setting up an exchange traded currency derivatives segment, it said Thursday.

This is in accordance with the recommendations laid down in the report of the RBI-SEBI Standing Technical Committee on Exchange Traded Currency Futures, released by the Reserve Bank of India and SEBI May 29 this year.

BSE will soon announce the formal launch date.

According to BSE, the exchange traded currency futures contracts facilitate easy access, increased transparency, efficient price discovery, better counterparty credit risk management, wider participation and reduced transaction costs.

Currently, institutions like banks, insurance companies, corporates, SEBI registered brokers, mutual funds, participants in bullion markets and individuals are among those eligible for trading. To facilitate active participation from these categories, BSE has offered easy terms.

National Stock Exchange has already got SEBI's permission and is starting trading on currency from Aug 29.