RBI curbs on offshore rupee-dollar trades

The Reserve Bank of India has said that any Indian entity taking direct or indirect equity participation
in an overseas outfit that facilitates trading of financial products linked to the rupee will need specific approval from the regulator. The Indian rupee is not fully convertible and such products could have implications for the exchange rate management of the country. Besides currency, the restriction imposed by RBI extends to all rupee-linked securities, stock indices and commodity futures as well.