India could allow foreign currency-rupee options by April
23 Jan 2003, Mia Trinephi, Risk magazine
“We are actively considering the prospect of banks based in India being permitted to offer foreign currency-rupee options to Indian corporates as a risk management product,” said the official. But the RBI would introduce the options in a controlled manner: “In the process the banks would be allowed to run an options book in a limited way.”
The official said there is not yet a firm time-frame for the approval of foreign currency-rupee options, but added that a realistic estimate would be April.
The RBI currently only allows companies to use forwards and long-term currency swaps in order to hedge their risks.