Ajay Mahajan on the best way to hedge portfolio for SMEs

Exchange Traded Currency Derivatives (ETCD) provide SMEs with an excellent alternative to OTC markets for hedging portfolios, as they may not receive foreign exchange credit lines or necessary credit agreements with banks. The transparency and liquidity that exchanges bring is also significantly higher than that of the banking industry. However, the Indian market would be more efficient if physically settled contracts were created rather than just cash-based.

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