Before currency derivatives were introduced in India, currencies were traded over the counter (OTC). Traders also negotiated and entered into currency forward contracts on the OTC market. This was an opaque, closed market with few regulations, dominated mainly by banks and financial institutions. There was also less accountability of the forex being traded. To curb this, the SEBI introduced the currency derivatives trading market formally in India, making it a regulated and transparent market that enables all kinds of interested traders to trade in currencies.