If you’re asking when forex trading started in India, the development of formal forex trading began in 1978, but the modern retail forex market in India, especially for individuals, only became structured and accessible in the 2000s with the emergence of electronic exchanges and SEBI regulation.

Key Milestones In India’s Forex Trading History

1. 1978 – Liberalised Exchange Rate Management

• The Reserve Bank of India (RBI) began managing exchange rates under a dual currency regime.
• Only banks and large institutions were allowed to conduct forex transactions.

2. 1991 – Economic Liberalisation

• India opened its economy to global trade.
• The foreign exchange market gradually shifted from a fixed regime to market-determined exchange rates.

3. 1994 – Full Convertibility On Current Account

• Indian residents and businesses were allowed to freely convert rupees for trade and travel-related purposes.
• RBI introduced guidelines for authorised dealers and money changers.

4. 2008 – Launch Of Currency Derivatives On Exchanges

• NSE and BSE introduced currency futures trading.
• For the first time, retail investors could trade USD/INR legally through Indian brokers.
• Currency derivatives became popular among traders, investors, and hedgers.

5. 2010–2013 – Expansion To More INR-Based Pairs

• EUR/INR, GBP/INR, and JPY/INR futures and options were introduced.
• This expanded the legal forex offerings for retail traders within India.

6. Today – Regulated Market For INR Pairs Only

• Indian residents can legally trade only INR-based pairs (USD/INR, EUR/INR, GBP/INR, JPY/INR) on NSE, BSE, and MSEI.
• Trading with offshore brokers in global pairs like EUR/USD or GBP/JPY is illegal under FEMA.

Conclusion

If you’re asking when forex trading started in India, institutional trading began in the late 1970s, but legal retail forex trading through exchanges started in 2008 with the launch of currency derivatives on NSE and BSE.

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