USD/INR forwards and NDF market overseas is a big market for the obvious reasons. Govt is putting up restrictions on these markets, but in my view Rupee should be given a go ahead to be traded on Indian commodities exchange in after market hours to curb volatility and fair price discovery for all the indian parties concerned. A informative and nice read:
Ever since the govt has taken the steps of banning gold and increasing the margins in USDINR contracts to curb volatility, I am afraid of things to come. I hope they do not completely ban trading the USDINR pair. It is possible, just like in case of gold coins. I think they are interfering with the functioning of the markets.