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Capital Account

In the Indian...

Question

In the Indian forex markets the following can take a position in a currency on their own account __________.

A

Full fledged money changers

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B

Authorised dealers

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C

Forex brokers

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D

Restricted money changer

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E

Both (A) and (B) above

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Solution

The correct option is B Authorised dealers
Authorised dealers are generally commercial banks and form a large part of the inter-bank market in India. Authorised dealers in foreign exchange are allowed to maintain foreign currency accounts with their correspondent banks abroad as required for their day-to-day foreign exchange business.

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