India could allow foreign currency-rupee options by April

The Reserve Bank of India (RBI) could allow banks to offer foreign currency-rupee options to corporate clients by April, according to a bank official.

“We are actively considering the prospect of banks based in India being permitted to offer foreign currency-rupee options to Indian corporates as a risk management product,” said the official. But the RBI would introduce the options in a controlled manner: “In the process the banks would be allowed to run an options book in a limited way.”

The official said there is not yet a firm time-frame for the approval of foreign currency-rupee options, but added that a realistic estimate would be April.

The RBI currently only allows companies to use forwards and long-term currency swaps in order to hedge their risks.

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.

Stemming the tide of rising FX settlement risk

As the trading of emerging markets currencies gathers pace and broader uncertainty sweeps across financial markets, CLS is exploring alternative services designed to mitigate settlement risk for the FX market

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