Tuesday, November 15, 2011

RBI ASKS BANKS TO SECURE APPROVAL FROM COs ISSUING DERIVATIVES

The Reserve Bank of India has asked banks to seek approval from company boards before selling derivative products to them.The Reserve Bank of India also said while modifying the 'Comprehensive Guidelines of Derivatives' that before offering any derivative product to clients, banks should obtain board resolution from the corporate which explicitly mentions the limit assigned by the corporate to the bank.

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