Locals give cautious welcome to exotics’ passage to India

Corporates in India remain cautious about adopting exotics five months after the country’s central bank allowed trading in the derivatives to resume.

The Reserve Bank of India lifted its ban on the derivatives on January 3, 12 years after Indian corporates and banks suffered massive losses from trading the products during the aftermath of the global financial crisis. Zero-cost derivatives, a form of currency derivatives that were inexpensive and popular at that time among Indian corporates with