Exotic Forex Derivatives Return in RBI’s Push to Deepen Markets
- Banks sold barrier forex options this month after RBI allowed
- Barrier options may be ideal for managing risk: Jindal Steel
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Exotic foreign-exchange derivatives are making a comeback in India, reflecting the central bank’s efforts to deepen the financial markets.
After the Reserve Bank of India’s allowed lenders to offer derivative products earlier this month, banks such as ICICI Bank Ltd. and Axis Bank Ltd. sold barrier forex options to customers including Reliance Industries Ltd. and Supreme Petrochem Ltd.