Question:
When was currency futures trading in the USD-INR pair launched by the NSE for the first time in India?
When was currency futures trading in the USD-INR pair launched by the NSE for the first time in India?
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The launch of USD-INR currency futures on August 29, 2008, marked the transition of the Indian forex market from a closed, dealer-driven OTC space into an open, highly competitive exchange-traded platform.
Updated On: Jun 22, 2026
- August 31, 2009
- August 29, 2008
- March 20, 2010
- November 15, 2007
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The Correct Option is B
Solution and Explanation
Step 1: Historical Evolution of Indian Currency Markets:
Historically, currency hedging in India was restricted to over-the-counter (OTC) forward contracts, which were highly customized but illiquid and accessible only to large corporate entities through authorized dealer banks.
Step 2: Launch of Exchange-Traded Currency Derivatives:
To provide a transparent, standardized, and highly liquid platform for currency hedging, SEBI and the Reserve Bank of India (RBI) jointly permitted stock exchanges to list currency derivatives.
Step 3: Pinpointing the Milestone Date:
The National Stock Exchange of India (NSE) inaugurated exchange-traded currency futures trading in the USD-INR pair on August 29, 2008 (B). This milestone allowed retail traders, importers, and exporters to hedge their foreign exchange exposures easily.
Historically, currency hedging in India was restricted to over-the-counter (OTC) forward contracts, which were highly customized but illiquid and accessible only to large corporate entities through authorized dealer banks.
Step 2: Launch of Exchange-Traded Currency Derivatives:
To provide a transparent, standardized, and highly liquid platform for currency hedging, SEBI and the Reserve Bank of India (RBI) jointly permitted stock exchanges to list currency derivatives.
Step 3: Pinpointing the Milestone Date:
The National Stock Exchange of India (NSE) inaugurated exchange-traded currency futures trading in the USD-INR pair on August 29, 2008 (B). This milestone allowed retail traders, importers, and exporters to hedge their foreign exchange exposures easily.
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