The Direction has been prepared after a consultative process with the respective stakeholders and considering the international best practices, the Central Bank said.

The Direction broadly covers the market practices, internal policies and procedures, ethics and standards to be practiced in conducting foreign exchange trading activities.

This Direction will be of significant importance and value since the smooth and efficient functioning of a foreign exchange market depends on the orderly conduct of foreign exchange trading activities with high professional standards. Further, as the market grows in size, diversity and complexity, the demand for uniform practices increases correspondingly, the Central Bank further said.