 "Maintain derivatives records for at least 2 years, RBI asks banks")
The Reserve Bank of India (RBI) has asked banks dealing in derivatives such as credit-default swaps to maintain their records for at least two years, and not to handle products that they, as market-makers, cannot price independently.
All pricing and periodic valuations of derivatives have to be documented, and if an established model is used, its details have to be understood and documented.
In case something is non-observable or subjective, its use must be justified and calculations documented.
The seller of the product has to undertake due diligence about the buyer, and only products that are in sync with the customers’ objectives and
