Slowly but surely

With a population of more than 1 billion people, India represents a huge opportunity for Asia’s derivatives houses. But so far, the Reserve Bank of India has been slow to liberalise the derivatives market. Mia Trinephi reports from Mumbai.

Push the limits without forcing them. That seems to be India’s motto when it comes to financial derivatives. The market for interest rate, currency and equity derivatives has been growing steadily, but the pace of deregulation has so far been slow, as the country’s regulator introduces reforms and guidelines step by step.

While the pace may be frustrating for some bankers who are used to the fast lane, most broadly welcome the strategy, noting that it will avoid back-tracking if