RBI to ease OTC derivative exposure norms for standalone primary dealers from April 1

MUMBAI (Reuters) - The Reserve Bank of India (RBI) will allow the standalone primary dealer's exposure limit to a qualifying central counter party (QCCP) for an over-the-counter derivative transaction, to be outside of the existing 25 percent limit of its net owned funds from April 1.

"With a view to promote central clearing of standardised OTC derivative products through a Central Counter Party (CCP), it has been decided that as an interim measure, a standalone PD's clearing exposure to a Qualifying CCP (QCCP) will be kept outside of the exposure ceiling of 25 per cent of its net owned funds applicable to a single borrower/counterparty," the RBI said in a statement on Thursday.

For the full circular, click http://tinyurl.com/or984kx

(Reporting by Neha Dasgupta; Editing by Subhranshu Sahu)