India's RBI to allow OTC FX options

The rules will allow corporates with FX risk to write covered call and put options on rupee and foreign currencies. In doing so, it will lift rules prohibiting corporates from earning a premium. They were previously limited to selling zero-cost structures.

"The facility of zero-cost structures/cost-reduction structures is being withdrawn because importers and exporters [will now] receive premiums," said the RBI.

The amendments would also enable banks to offer vanilla cross-currency options to

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