The Reserve Bank of India has been considering the introduction of ForeignCurrency – Rupee (FC/INR) options as a part of developing the derivativemarket in India and adding to the spectrum of hedge products available toresidents for hedging currency exposures. In this context, it constituted aTechnical Committee with Smt. Grace Koshie, Chief General Manager-in-charge, Exchange Control Department as Chairperson. This committee wasentrusted with the task of going into the details of the product and preparing aroadmap for the introduction of currency options in India.The members of the Committee are as follows:
InstitutionName of therepresentative
1.Bank of IndiaPawan Bajaj2.Canara Bank K.G. Hegde3.CitibankAnanth Narayan4.FEDAIB.Y. Olkar5.ICICI Bank Ltd.Neeraj GambhirICICI Bank Ltd.Sushil Sawant6.Reserve Bank of IndiaP. KrishnamurthyReserve Bank of IndiaG. Padmanabhan (Convenor)7.State Bank of IndiaPartha BhattacharyyaThe Committee had a series of meeting over the period June –02 to October-02and this report is the outcome of the deliberations that the Committee had onthe various issues regarding the introduction of foreign currency-rupee options.The overall structure of this report is as follows:
discusses the evolution of the option markets around the worldand international experiences of the market responses after introductionof the currency options market. This part also looks at the current foreignexchange derivative products available in India and builds a rationale forthe introduction of foreign currency - rupee options.