Financial Technologies and Multi Commodities Exchange of India have denied the news to stock exchanges, that both the companies were exiting the Dubai Commex (DGCX).
The companies said they would adhere to the compliance requirement in terms of the listing agreement.
The RBI, in its April 25 notification, said that any overseas entity having equity participation of an Indian entity directly/ indirectly shall not offer financial products linked to Indian Rupee (e.g. non-deliverable trades involving foreign currency, rupee exchange rates, stock indices linked to Indian market, etc) without its approval.
This was because the Indian Rupee is not fully convertible and such products can impact the exchange rate management of the country. Any violation of this would attract action under Foreign Exchange Management Act (FEMA) 1999, said RBI.
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