The Reserve Bank of India (RBI) on Monday allowed branches and overseas subsidiaries of Indian banks to sell structured financial and derivative products in established financial centres even if these products are not permitted in India.
?It has been decided that if foreign branches or subsidiaries of Indian banks propose to offer structured financial and derivative products that are not specifically permitted by the Reserve Bank of India in the domestic market,
they may do so only at the established financial centers outside India like New
York, London, Singapore, Hong Kong, Frankfurt, Dubai, etc,? RBI said in a notification.
This was the result of the review of an earlier December 2008 circular that mandated banks to obtain prior approval of the RBI by furnishing full particulars of the products, including their regulatory treatment prescribed by the host-country regulators.
The RBI, however, said that at other centres, banks may offer only
those products that are specifically permitted in India.