Indian regulator finds abnormal FX trading

India's state regulator, Securities Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term Board of India (SEBI) has found 'abnormal' trading on one of its exchanges offering currency futures. SEBI's report which has not named the broker highlights alarming trading activity.

The rupee has weakened to record levels on the back of inflation and global uncertainty.

Currently trading at 51.461 against the greenback up by +0.035 or 0.07% at midday.

Currency futures are traded on MCX, NSE and the newly formed USE. Rumours suggest that the exchange in question is in fact the United Stock Exchange Stock Exchange A stock exchange, also known as a securities exchange or bourse represents is a facility where stockbrokers and traders can buy and sell securities.This includes shares of stock, bonds, exchange-traded funds (ETFs), or other financial instruments. By extension, stock exchanges can also provide facilities for the issue and redemption of such securities and instruments and capital events including the payment of income and dividendsStock exchanges have developed into a permanent fixture in the fin A stock exchange, also known as a securities exchange or bourse represents is a facility where stockbrokers and traders can buy and sell securities.This includes shares of stock, bonds, exchange-traded funds (ETFs), or other financial instruments. By extension, stock exchanges can also provide facilities for the issue and redemption of such securities and instruments and capital events including the payment of income and dividendsStock exchanges have developed into a permanent fixture in the fin Read this Term, its main promoter Jaypee Capital was under scrutiny for circular trading.

India's leading exchanges NSE and MCX introduced commission charges on currency transactions, business transferred to USE who was offering commission free trading; in October/ November 2011 USE saw over 35% market share. However reports about misleading practise at USE saw a dramatic decline of 65% reduction in client volumes.

Indias currency futures has a market share of around $8-10billion a day. It is widely used by corporates to hedge exposure. Indias rupee is a non convertible currency.

Forexmagnates team covered India's retail FX market in their quarterly report published in 2011.

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