The RBI plans to issue guidelines for introducing exchange-traded currency futures and options for three cross-currency pairs — Euro-USD, GBP-USD and USD-JPY — in consultation with SEBI by November-end. This, RBI said, would enable direct hedging of exposures in foreign currencies and permit execution of cross-currency strategies by market participants.The RBI also proposed an increase in hedging limits for resident entities from $250,000 to $1 million without producing documents subject to submission of a simple declaration.It further mooted a review of documentation requirements for over-the-counter forex market besides considering allowing financially sophisticated investors to participate in currency markets without underlying exposure.

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