Which derivatives are regulated by RBI?
Broadly, RBI is empowered to regulate the interest rate derivatives, foreign currency derivatives and credit derivatives.
Which market is regulated by RBI?
As part of this mandate, the Reserve Bank is tasked with the regulation, development and oversight of the interest rate markets, including the Government Securities market; money markets including the market for repo in Government securities and corporate bonds; foreign exchange markets; derivatives on interest rates/ …
How are rupee interest rate derivatives transactions accounted for?
All rupee interest rate derivatives transactions, globally, of related entities of the market-maker are accounted for in the books of the market-maker. In other words, no related entity of the market-maker shall undertake transactions in Rupee interest rate derivatives other than under the ‘back-to-back’ arrangement.
When will the rupee interest rate derivatives (Reserve Bank) Directions 2019 be released?
The draft directions was released for public comments on April 03, 2019. Based on the feedback received from the market participants, the Rupee Interest Rate Derivatives (Reserve Bank) Directions, 2019 has been reviewed and has since been finalized.
What is the PV 01 of non-option rupee derivative contracts?
i. The gross PV 01 of all non-option rupee derivative contracts (including rupee – foreign currency contracts) should be within 0.25 per cent of the net worth of the bank as on the last balance sheet date.
What are the requirements of a non-resident for interest rate derivative transactions?
A non-resident shall ensure that its interest rate derivative transactions conform to the provisions of Section 45 (V) of the RBI Act, 1934, as well as applicable provisions of Foreign Exchange Management Act, 1999 and the rules, regulations and directions issued thereunder. 10. Remittance/Payments by non-residents –