I would like to display latitude and longtitude coordinates (at the bottom of window) for my data which I am editing in different coordinate system. Is it possible?
Right click inside your data frame and open the "Properties" window. Go to the "General" tab. Under the "Units" sun-heading change the "Display" drop-down to whatever format you wish to use (DD or DMS in your case).
Look at "Working with Map Units" here if you need more help.