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RBI/2017-18/151
DBR.No.BP.BC.103/21.04.157/2017-18
April
6, 2018
The Chairman and Managing
Directors/ Chief Executive Officers of
All Scheduled Commercial Banks (excluding RRBs and LABs),
All India Term-Lending & Refinancing Institutions &
Primary Dealers
Dear Sir,
Comprehensive Guidelines on
Derivatives: Modifications
Please refer to para 8.3 of
the circular DBOD No.BP.BC.44/21.04.157/2011-12 dated November 2, 2011,
in terms of which ‘user suitability and appropriateness’ are applicable to
all generic and structured derivative products except forex forward
contracts.
2. The instructions have been
reviewed, and it has now been decided that stand-alone plain vanilla forex
options (without attached structures) purchased by clients will be exempt
from the ‘user suitability and appropriateness’ norms, and the regulatory
requirements will be at par with forex forward contracts.
Yours faithfully
(Saurav Sinha)
Chief General Manager-in Charge
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