NEW DELHI: The Reserve Bank of India could ease restrictions on forex futures once there is stability in the foreign exchange market, a deputy governor of the central bank said on Monday.
"Once the stability improves in the forex market, we will look at the whole gamut of futures market," RBI deputy governor HR Khan said on the sidelines of an event here. "As things stabilise, we will look at more and more relaxations. For examples, in OTC (over-the-counter) market, there is a requirement of documentations for the underlying.
For up to certain small values, we may think that documentation requirement can be done away with," he said. Khan said RBI is in talks with Securities and Exchange Board of India(Sebi) on making the dollar-rupee OTC and futures market trades, possibly on a delivery basis.
"Going forward, the best idea is to harmonise both OTC and the futures market; both can possibly be delivery-based. We are in discussions with Sebi," Khan added. Separately, another deputy governor of the central bank said the RBI could consider issuing new bank licences more frequently.
"We propose to carry forward these ideas and come up with a detailed road map for a necessary reform and regulations for free entry and making the licensing process more frequent after we get comments from the stakeholders," said RBI deputy governor KC Chakrabarty. RBI has already come out with a discussion paper on the banking sector in India and has invited comments from stakeholders.
"The document explores the possibility of differentiated licence for small banks and wholesale banks, possibility of continuous on-tap licensing and the possibility of converting large urban co-operative banks into commercial banks," said Chakrabarty. The central bank is also in the process of issuing new bank licences for which it has received applications from 26 public and private sector entities. The RBI is likely to issue the licences by January 2014.
The apex bank has already set up an external committee of financial sector experts, headed by former RBI governor Bimal Jalan, to scrutinise applications. Chakrabarty said that the banking system is well capitalised. "Profitability is reasonable; return on equity is reasonable; NPA is under control and it meets with all global standards of regulation for business," he added.
As reported in EconomicTimes
"Once the stability improves in the forex market, we will look at the whole gamut of futures market," RBI deputy governor HR Khan said on the sidelines of an event here. "As things stabilise, we will look at more and more relaxations. For examples, in OTC (over-the-counter) market, there is a requirement of documentations for the underlying.
For up to certain small values, we may think that documentation requirement can be done away with," he said. Khan said RBI is in talks with Securities and Exchange Board of India(Sebi) on making the dollar-rupee OTC and futures market trades, possibly on a delivery basis.
"Going forward, the best idea is to harmonise both OTC and the futures market; both can possibly be delivery-based. We are in discussions with Sebi," Khan added. Separately, another deputy governor of the central bank said the RBI could consider issuing new bank licences more frequently.
"We propose to carry forward these ideas and come up with a detailed road map for a necessary reform and regulations for free entry and making the licensing process more frequent after we get comments from the stakeholders," said RBI deputy governor KC Chakrabarty. RBI has already come out with a discussion paper on the banking sector in India and has invited comments from stakeholders.
"The document explores the possibility of differentiated licence for small banks and wholesale banks, possibility of continuous on-tap licensing and the possibility of converting large urban co-operative banks into commercial banks," said Chakrabarty. The central bank is also in the process of issuing new bank licences for which it has received applications from 26 public and private sector entities. The RBI is likely to issue the licences by January 2014.
The apex bank has already set up an external committee of financial sector experts, headed by former RBI governor Bimal Jalan, to scrutinise applications. Chakrabarty said that the banking system is well capitalised. "Profitability is reasonable; return on equity is reasonable; NPA is under control and it meets with all global standards of regulation for business," he added.
As reported in EconomicTimes
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