Speculation mounts over exotic FX hedge ban in India
Local press reported last week that banks are now limited to selling vanilla Indian rupee/USD derivatives products to corporates to hedge FX exposure. At the time of going to press, the RBI declined to confirm or deny any regulatory change.
Speculation of an intervention by the RBI comes as a series of companies file complaints with the central bank against financial institutions active in the FX derivatives business, say market participants.
The companies allege some banks are misguiding
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