Built to last?

There is concern that some foreign dealers have sold products to Indian corporates that they do not fully understand. This raises fears of a regulatory backlash, but some parties reckon new supervisory rules are already too severe. By Duncan Wood

Extortionate margins, opaque term sheets, risky products sold to gauche corporate treasurers - India's derivatives market has all the ingredients necessary for a major mis-selling scandal, says AV Rajwade, a Mumbai-based independent consultant. The problem has been masked because dealers are habitually selling transactions to corporates and then using Indian state banks as intermediaries to get