| Comprehensive Guidelines on Derivatives |
Chief Executive Officers
Commercial Banks (excluding RRBs),
India Term-Lending & Refinancing Institutions &
Guidelines on Derivatives
indicated in paragraph
137 of the Mid-term
Review of Annual Policy for year 2006-07, an Internal Group was constituted
by the Reserve Bank to review the existing guidelines on derivatives and formulate
comprehensive guidelines on derivatives by banks.
Draft comprehensive guidelines on derivatives based on the recommendations of
the Group were placed on the RBI website on December 11, 2006 and were open for
comments from all concerned.
Comments were received from a wide spectrum of banks and other market participants.
The guidelines have been suitably revised in the light of the feedback received
and are furnished in the Annex.
Guidelines in respect of foreign exchange derivatives will be issued separately.