Hedging hit hard

The Reserve Bank of India issued draft guidelines last November proposing a ban on reduced-cost derivatives structures – the source of much controversy in India’s corporate market during the past three years. But some corporates are not happy with the RBI’s thinking and are lobbying the central bank to change its stance. Sarfraz Thind reports

Taj Mahal

India’s regulators have tended to err on the side of caution when dealing with the country’s derivatives sector. And many market participants believe this conservative approach resulted in the ­Reserve Bank of India (RBI) drafting stringent new proposals last year that could ban zero- or reduced-cost structures, outlaw the use of complex onshore foreign exchange derivatives and incorporate far stricter reporting requirements on banks’ derivatives dealings with companies (see box).

Most market

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact info@risk.net to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Risk.net? View our subscription options

Most read articles loading...

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here