Market regulator Securities and Exchange Board of India will come out with exchange traded currency futures in the next three months, its chairman C B Bhave said in New Delhi on Tuesday.
Last week, a Sebi-RBI committee had recommended introduction of currency futures markets, initially for dollar-rupee contract, to enable investors manage volatility in the currency market.
The committee had suggested that the minimum size of the currency futures contract at the introduction would be $1,000.
Meanwhile, the Reserve Bank, in a bid to support the Sebi move, has already issued comprehensive guidelines on foreign currency forwards in over-the-counter market.
The Sebi chairman said that later, the regulator will start working on interest rate derivatives.
"Next we will start working on interest rate derivatives," Bhave said at the annual general meeting of Assocham.
Keen on providing a trading platform for the small and medium enterprises, Sebi will work on the creation of an exchange for the SMEs.
"Next we will engage our mind on creation of exchange for small and medium enterprises," he added.