Comprehensive Guidelines on Derivatives: Modifications

RBI/2017-18/151

DBR.No.BP.BC.103/21.04.157/2017-18

April 6, 2018

The Chairman and Managing Directors/ Chief Executive Officers of 

All Scheduled Commercial Banks (excluding RRBs and LABs),

All India Term-Lending & Refinancing Institutions &

Primary Dealers

Dear Sir,

Comprehensive Guidelines on Derivatives: Modifications

Please refer to para 8.3 of the circular DBOD No.BP.BC.44/21.04.157/2011-12 dated November 2, 2011, in terms of which ‘user suitability and appropriateness’ are applicable to all generic and structured derivative products except forex forward contracts.

2. The instructions have been reviewed, and it has now been decided that stand-alone plain vanilla forex options (without attached structures) purchased by clients will be exempt from the ‘user suitability and appropriateness’ norms, and the regulatory requirements will be at par with forex forward contracts.

Yours faithfully

(Saurav Sinha)

Chief General Manager-in Charge