RBI Proposes Easier Norms for Bond Options

(Reserve Bank of India RBI) may ease norms for infrastructure funding www.ambitionias.com
  • Proposing the introduction of bond options in India, a Reserve Bank of India committee has recommended simple structured contracts.
  • This will allow companies to trade up to Rs 5 crore without documentation relating to exposure.
  • “Both OTC as well as exchange traded options may be introduced.
  • While in the OTC segment only European options may be permitted, both American and European structures may be permitted on Exchanges,” the panel said.