India’s banking regulator has allowed domestic
banks’ offshore branches in global financial
centres to sell structured products that are banned onshore.
But the onshore market remains closed.
|The central bank
measure lets Indian banks compete with international
rivals on structured products
The Reserve Bank of India’s (RBI) May 12 notification allows these branches to sell
structured financial and derivative products - a small step
forward for Indian structured finance. But the reforms do not
advance the highly anticipated opening of the domestic
Structured and derivative products sold in India must
receive RBI approval, limiting their development and
complexity. That also means Indian banks have less experience
in this space, and it’s unclear...