A global decentralized market for the trading

ofcurrencies.
Presented by : AAYUSH

AVISHAK

The foreign exchange market

determines the relative values of
different currencies.
The foreign exchange market works
through financial institutions, and it
operates on several levels.

Traders- commercial banks

Brokers- brokerages firms
Speculators - long position and short
position
Hedgers
Arbitrageurs
governments

Transactions in foreign exchange

were absolutely prohibited excepting
in certain selected sectors. Every
foreign company had to maintain
Indian share of 26 percent.

FERA was repealed in 1998 and Foreign

Exchange Management Act (FEMA) was
enacted. No unauthorized person would
be allowed to deal in foreign exchange.
The authorized person could sell; draw
foreign exchange from any authorized
person on current Account transaction,
subject to approval of R.B.I.

GLOBALISATION
EXAMPLE.

An Association of banks dealing in foreign

exchange in India (typically called
Authorized Dealers ADs) as a self
regulatory body and is incorporated under
Section 25 of The Companies Act, 1956.
It's major activities include framing of rules
governing the conduct of inter-bank foreign
exchange business among banks vis--vis
public and liaison with RBI for reforms and
development of forex market.

AUTHORISED DEALERS

CATEGORY I : BANKS
CATEGORY II : RRB
CATEGORY III : EXIM BANK,IFCI BANK
OTHERS FOREX DEALERS
FFMC - BUY AND SELL FOREX
RMC - ONLY PURCHASE FOREX

EXPOTERS
IMPOTERS
REMITANCES
STATISTICS
DEALING SECTION

NOSTRO
VOSTRO
LORO