Indian banks have requested for more time to comply with the Reserve Bank of India’s (RBI) new rules on derivatives, The Wall Street Journal reports. The rules are part of the bank’s efforts to prevent mis-selling of complex currency derivatives to local companies. The rules do not allow banks to sell derivative products they cannot independently price and make it compulsory for foreign banks to price such products in India. As per the new rules, banks have to make sure that company executives to whom they sell derivatives are backed by their board of directors to execute such transactions. The new rules come due to disputes between banks and some mid-size companies which claimed they had been sold derivatives without being warned of the risks, resulting in heavy losses to them during the economic crisis.

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