ZEE Business
ZEE BUSINESS
हिंदी में पढ़ें  हिंदी में पढ़ें
Live TV
Live TV
  • Home
  • Personal Finance
    • PPF
    • Mutual Funds
    • Income tax
    • EPFO
    • Income Tax Calculator
    • Personal Loan Calculator
    • Car Loan Calculator
    • Home Loan Calculator
    • SIP calculator
    • SWP Calculator
    • MF Returns Calculator
    • Lumpsum Calculator
  • India
    • Companies
    • Property
    • Startups
    • Uidai
  • Economy
    • Aviation
  • Tech
    • Mobiles
    • Apps
  • Auto
    • Cars
    • Bikes
  • Markets
    • Commodities
    • Currency
  • Railways
  • World
    • Economy
    • Politics
    • Markets
  • Survey
  • videos
  • photos
  • More ...
    • VIDEOS
    • PHOTOS
BREAKING NEWS
  • RBI extends implementation of card tokenisation norms by 3 months; deadline extended till 30 September
  • EXCLUSIVE: 'Noida International Airport at Jewar to be jewel in crown of Indian aviation sector' - Know what all is coming up at
  • D-Street Corner: Market gains 2.7% in highly volatile week, investors richer by 5.5 lakh cr; what should investors do on Monday?
  • Sebi allows UPI payment option to invest in public issues of REITs, InvITs with effect from 1 August
  • Netflix lays off 450 employees in two months—Here's what's bothering OTT giant
Read in App
Business News » India News

Small and retail market participants get relief! Here is what RBI has issued now

The RBI directions seek to protect small and retail participants, such as small and medium enterprises (SMEs), ensuring that customised products are only offered to large, sophisticated, non-retail users, who are capable of managing attendant risks better.

  • Twitter
  • Facebook
  • Linkedin
  • whatapp
  • View in App
Small and retail market participants get relief! Here is what RBI has issued now
RBI said that all payments related to IRD transactions of a non-resident may be routed through a rupee account of the non-resident or through a vostro account maintained with a bank in India. Image source: Reuters

The Reserve Bank of India (RBI) has issued Rupee Interest Rate Derivatives (Reserve Bank) Directions 2019 to consolidate and simplify all previous regulations with a view to protect small and retail participants. Framed with a view to guide the initial evolution of the market through prescriptive requirements, these regulations on interest rate derivatives (IRDs) have so far been issued separately for each product, including for products traded on exchanges. Highlights of the RBI directions are: 

1. The RBI said, "Given the evolution of the market, there is now a need to permit flexibility for exchanges and market-makers in the design and innovation of products while ensuring that relatively less informed participants using these derivatives markets are adequately protected." 

2. According to the central bank, the directions consolidate, rationalise and simplify all previous regulations issued on interest rate derivatives, while adding that exchanges have been provided with the flexibility to design and structure standardised products based on market requirements.

3. The apex bank said, "Similarly, in the over-the-counter (OTC) market, market-makers such as banks have been permitted to offer products tailored to the needs of corporates and other non-retail entities." 

4. The directions seek to protect small and retail participants, such as small and medium enterprises (SMEs), ensuring that customised products are only offered to large, sophisticated, non-retail users, who are capable of managing attendant risks better.

5. It has also decided to put in place an internal arrangement to periodically review the structured products offered by market makers. According to the directions, IRD contracts can be transacted either on recognised stock exchanges or OTC. Stock exchanges are permitted to offer any standardised IRD product.

देखिए #MarketMaangeMore में मार्केट एक्सपर्ट संजीव भसीन की बजट विश लिस्ट।@sanjivBhasin @AnilSinghviZEE #BudgetWithZee #TaxGhataoFMZee @FinMinIndia @nsitharaman pic.twitter.com/XBauXWIweh

— Zee Business (@ZeeBusiness) June 27, 2019

6. The RBI said, "The product design, eligible participants and other details of the IRD product may be finalised by the exchanges," adding "Exchanges shall obtain prior approval of the Reserve Bank before introducing any new IRD product or before carrying out modifications to an existing product." 

7. Further, it added that all payments related to IRD transactions of a non-resident may be routed through a rupee account of the non-resident or through a vostro account maintained with a bank in India. The market-maker should maintain complete details of such transactions, it said.

Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.

TAGS:
Reserve Bank of Indiaretail market
Written By: ZeeBiz WebTeam
Updated: Thu, Jun 27, 2019
11:14 am
New Delhi, ZeeBiz WebDesk
RELATED NEWS
Fintech's halt PPI loan, buy now pay later services as RBI restrictions posing challenges Fintech's halt PPI loan, buy now pay later services as RBI restrictions posing challenges
RBI extends implementation of card tokenisation norms by 3 months; deadline extended till 30 September RBI extends implementation of card tokenisation norms by 3 months; deadline extended till 30 September
RBI stops non-bank PPI issuers from loading wallets, cards via credit lines RBI stops non-bank PPI issuers from loading wallets, cards via credit lines
First tranche of 2022-23 gold bonds to open for subscription on Jun 20 First tranche of 2022-23 gold bonds to open for subscription on Jun 20
Banks, financial institutions should proactively undertake stress testing of loan books: RBI DG Rao Banks, financial institutions should proactively undertake stress testing of loan books: RBI DG Rao

LATEST NEWS

iOS users can now securely save their passwords in Chrome

This Mukul Agrawal textile stock may grow over 52% on strong export outlook and government initiatives

Strong fundamentals, good dividend yield make Coal India, ONGC, NTPC, 3 other stocks good bets in current market—Check TPs, dividend payout ratios

US one step away from historic gun law reforms

Two-thirds of MSME loan originations concentrated in Maharashtra, Tamil Nadu, and Delhi: Credit information company data

Auto major Ford extends production at Tamil Nadu plant till July-end

Net profits of manufacturing companies surged by over 50% in FY22, says RBI

BharatNCAP: Government proposes to implement vehicle safety rating, issues draft notification

Government extends levy of GST compensation cess till March 2026, finance ministry issues notification

Indian markets should start its journey upward by October – know why? Analyst lists out 4 reasons

  • India News
  • World News
  • Companies News
  • Market News
  • Personal Finance News
  • Technology News
  • Automobile News
  • Small Business News
  • Income Tax Calculator
  • Live TV
  • Videos
  • Photos
  • Author
  • Rss Feed
  • Advertise with us
  • Privacy Policy
  • Legal Disclaimer

Latest Trending Updates

  • EPFO
  • Budget 2020
  • Income Tax Return
  • Auto Expo 2020
  • Home Loan
  • Business News

Trending Topics

  • Income Tax
  • income Tax Calculator
  • 7th Pay Commission
  • Reserve Bank of India
  • GST
  • Latest Business News

Follow us on

zeebiz
zeebiz

Partner Sites

  • Zee News
  • Hindi News
  • Marathi News
  • Bengali News
  • Tamil News
  • Malayalam News
  • Gujarati News
  • Telugu News
  • Kannada News
  • DNA
  • WION
© 2022. India Dot Com Private Limited. All Rights Reserved.
LIVE TV