The National Stock Exchange (NSE) was the first exchange in India to receive approval from the Securities and Exchange Board of India (SEBI) to launch a currency derivative segment. This segment allows investors to trade in contracts that depend on the value of different currencies.

On August 29, 2008, NSE launched its trading platform for currency derivatives by introducing USD-INR currency futures. This meant that investors could enter into contracts to buy or sell US dollars at a fixed exchange rate on a specific date in the future. Later, NSE introduced trading in other currency pairs, such as the British pound (GBP), the euro (EUR), and the Japanese yen (JPY), against the Indian rupee (INR).

In October 2010, NSE introduced currency options, which give investors the right (but not the obligation) to buy or sell a currency at a fixed exchange rate on or before a specific date.

A currency future is a contract to exchange one currency for another at a fixed exchange rate on a specific date in the future. This helps investors manage their exchange rate risks. For example, if an importer expects to receive a shipment of goods from the US in three months, they can enter into a USD-INR currency future contract to buy US dollars at a fixed rate on the date they expect to pay for the goods. This helps them avoid any potential losses due to changes in the exchange rate.

NSE offers four currency pairs for trading: USD-INR, EUR-INR, GBP-INR, and JPY-INR. Investors can also trade in cross-currency contracts, such as GBP-USD, EUR-USD, and USD-JPY, which allow them to exchange one foreign currency for another.

In 2018, NSE introduced options trading in EUR-INR, GBP-INR, and JPY-INR, as well as cross-currency futures and options contracts. This gave investors more flexibility and opportunities to manage their risks.

The currency derivatives segment of NSE offers trading in various instruments, including interest rate futures, which allow investors to manage their interest rate risks.

NSE's automated trading system, NEAT (National Exchange for Automated Trading), is a modern and safe way to trade. It's a fully computerized system that matches buyers and sellers electronically, making it easy for investors to trade from anywhere in the country. The system is designed to provide a safe and efficient way to trade, and it has helped to increase transparency and speed in the markets.