Business Standard

Exotic forex derivatives set for India in RBI push to deepen markets

The return of exotic forex derivatives as well as the introduction of swaptions are part of efforts to give corporates more risk-management options as India's global trade integration expands

RBI ( Bloomberg)
Premium

Subhadip Sircar and Akshay Chinchalkar | Bloomberg
Exotic foreign-exchange derivatives are making a comeback in India, reflecting the central bank’s efforts to deepen the financial markets. 

After the Reserve Bank of India’s allowed lenders to offer derivative products earlier this month, banks such as ICICI Bank Ltd. and Axis Bank Ltd. sold barrier forex options to customers including Reliance Industries Ltd. and Supreme Petrochem Ltd. 

The return of exotic forex derivatives as well as the introduction of swaptions are part of efforts to give corporates more risk-management options as India’s global trade integration expands. Still, the authorities have tightened rules given that India had to ban derivative

Don't miss the most important news and views of the day. Get them on our Telegram channel

First Published: Jan 20 2022 | 10:08 AM IST

Explore News

To read the full story, subscribe to BS Premium now, at just Rs 249/ month.

Key stories on business-standard.com are available only to BS Premium subscribers.

Register to read more on Business-Standard.com