The Reserve Bank of India [Get Quote] and Securities and Exchange Board of India are in discussions to relax the currency trading norms, following demands from the market participants, a top Sebi official said on Wednesday.

"There are demands from market participants that the currency trading norms should be relaxed. RBI and Sebi are working together to relax the norms," Sebi Chairman, C B Bhave said.

Further relaxation in currency trading norms is expected to enable all category of marekt particpants to trade in currency futures. Presently, only a selected category of players are allowed to trade in currency futures.

The regulators have been trying to ensure transparency and timely settlement of transactions in the system, which are essential to develop a healthy financial system in the country, Bhave said.

"We have been trying to bring in assurance of settlement and transparency in the market...the present financial crisis in global markets is an outcome of lack of faith on these principles," Bhave said.

BSE on Wednesday launched currency derivatives segment (BSE-CDX) that would enable participants to hedge their currency risks through trading in the dollar-rupee platform.

The National Stock Exchange had kicked off exchange-traded currency futures for the first time in the country on August 29, while leading commodity bourse Multi Commodity Exchange of India is expected to launch the facility soon.