 "Parliament passes Bilateral Netting of Qualified Financial Contracts Bill")
Parliament on Wednesday passed a Bill that seeks to provide a legal framework for bilateral netting of qualified financial contracts.
Lok Sabha had passed the bill on Sunday.
The legislation allows for enforcement of netting for qualified financial contracts.
Finance Minister Nirmala Sitharaman termed the Bill as critical for financial stability in the country, and said it brings in a firm legal basis for bilateral netting for two counter parties.
Sitharaman said: "It is just the bilateral contracts which do not have any firm legal basis. Value of bilateral derivative contracts is estimated by Clearing Corporation of India to be Rs. 56,33,257 crore as of March 2018."
Bilateral contracts constitute 40 per cent of total financial contracts while multilateral contracts constitute 60 per cent, she added.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
You’ve reached your limit of {{free_limit}} free articles this month.
Subscribe now for unlimited access.
Already subscribed? Log in
Subscribe to read the full story →
Smart Quarterly
₹900
3 Months
₹300/Month
Smart Essential
₹2,700
1 Year
₹225/Month
Super Saver
₹3,900
2 Years
₹162/Month
Renews automatically, cancel anytime
Here’s what’s included in our digital subscription plans
Exclusive premium stories online
Over 30 premium stories daily, handpicked by our editors
Complimentary Access to The New York Times
News, Games, Cooking, Audio, Wirecutter & The Athletic
Business Standard Epaper
Digital replica of our daily newspaper — with options to read, save, and share
Curated Newsletters
Insights on markets, finance, politics, tech, and more delivered to your inbox
Market Analysis & Investment Insights
In-depth market analysis & insights with access to The Smart Investor
Archives
Repository of articles and publications dating back to 1997
Ad-free Reading
Uninterrupted reading experience with no advertisements
Seamless Access Across All Devices
Access Business Standard across devices — mobile, tablet, or PC, via web or app