MUMBAI: RBI governor Shaktikanta Das has urged banks to extend their involvement within the rupee derivatives market, each domestically and internationally, and to make sure that retail prospects will not be deprived within the overseas alternate market. He additionally known as on banks to cease offering providers to unauthorised foreign exchange platforms.
“Though banks and different market contributors have made appreciable progress, the participation of home banks in derivatives markets stays restricted, with solely a small variety of energetic market-makers.The participation of Indian banks in world markets is rising, however it’s nonetheless fairly small,” mentioned Das.
The governor’s feedback come after RBI’s crackdown on speculative buying and selling in exchange-traded overseas foreign money derivatives, which was deemed a violation of FEMA rules. In Jan, RBI acknowledged that solely these with an underlying publicity to overseas alternate may take part within the derivatives market.
Das, who was talking at a convention of the Fastened Revenue and Cash Market Derivatives Sellers Affiliation (FIMMDA) in Barcelona on Monday, mentioned that home banks are coping with market-makers in world markets slightly than with finish shoppers, they usually have but to emerge as important market-makers globally.
“Going ahead, our focus needs to be on enhancing and widening participation of Indian gamers in markets for rupee derivatives, each domestically and offshore, whereas being prudent,” mentioned Das. The governor additionally requested that banks defend the pursuits of small prospects when buying and selling in foreign exchange, declaring that transparency in pricing remains to be a piece in progress and that extra could be finished. “Retail prospects are but to obtain a deal that is the same as that of enormous prospects,” mentioned Das.
“Though banks and different market contributors have made appreciable progress, the participation of home banks in derivatives markets stays restricted, with solely a small variety of energetic market-makers.The participation of Indian banks in world markets is rising, however it’s nonetheless fairly small,” mentioned Das.
The governor’s feedback come after RBI’s crackdown on speculative buying and selling in exchange-traded overseas foreign money derivatives, which was deemed a violation of FEMA rules. In Jan, RBI acknowledged that solely these with an underlying publicity to overseas alternate may take part within the derivatives market.
Das, who was talking at a convention of the Fastened Revenue and Cash Market Derivatives Sellers Affiliation (FIMMDA) in Barcelona on Monday, mentioned that home banks are coping with market-makers in world markets slightly than with finish shoppers, they usually have but to emerge as important market-makers globally.
“Going ahead, our focus needs to be on enhancing and widening participation of Indian gamers in markets for rupee derivatives, each domestically and offshore, whereas being prudent,” mentioned Das. The governor additionally requested that banks defend the pursuits of small prospects when buying and selling in foreign exchange, declaring that transparency in pricing remains to be a piece in progress and that extra could be finished. “Retail prospects are but to obtain a deal that is the same as that of enormous prospects,” mentioned Das.
