MEDIA RELEASE

Bombay Stock Exchange applies for Currency Derivatives Segment

** Mulling strategic alliances to grow the segment **

The BSE has applied to SEBI for setting up a Currency Derivatives Segment in line with the recommendations laid down in the Report of the RBI-SEBI Standing Technical Committee on Exchange Traded Currency Futures, released by RBI & SEBI on May 29, 2008.

BSE is now awaiting SEBI approval, after which certain post approval activities for launch of the Segment would be undertaken.

Recognizing that the worldwide average daily turnover in Exchange Traded Currency Derivatives has grown at a CAGR of approximately 23.2% as compared to the CAGR of 10.3% in the OTC Currency Derivatives market (the domestic OTC volume in Currency Derivatives is approximately US $24 billion per day), the Exchange is exploring strategic arrangements with certain established entities in the forex market. This, it is expected,  would lend reach, domain expertise and an active participation to this evolving segment.

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The Exchange Traded Currency Futures (ETCF) contracts facilitate increased transparency, efficient price discovery, enable better counterparty credit risk management, wider participation, trading of a standardised product and reduced transaction costs.

About BSE: Established in 1875, BSE is the oldest Stock Exchange in Asia. Earlier an Association of Persons (AoP), the exchange is now a corporatised and demutualised entity. BSE reaches to around 450 cities and towns in India and has more than 4,800 listed companies on the boards, with over 7,500 scrips being traded. The companies listed on BSE command a total market capitalization of more than USD 1.7 trillion. The Exchange offers trading in the equity (cash and derivatives) and debt (corporate and government securities) segments.