This website is only for informational purposes. Visitors are requested to note that the information is intended to be correct, complete, and up-to-date. Juris Corp does not warrant that the information contained on this website is accurate or complete, and disclaims any and all liability to any person for any loss or damage caused by errors or omissions, whether such errors or omissions result from negligence, accident or any other cause.
This website is not intended to be a source of advertising or solicitation. The reader must not consider the information contained herein to be an invitation for a lawyer-client relationship, must not rely on information provided herein and must seek independent advice. Transmission, receipt or use of any information on this website does not constitute or create a lawyer-client relationship. No recipients of content from this website should act or refrain from acting, based upon any or all of the contents of this website.
Furthermore, Juris Corp does not wish to represent anyone desiring representation based solely upon viewing this web site. Finally, the reader is warned that the use of e-mail for confidential or sensitive information is susceptible to inherent risks of lack of confidentiality associated with sending e-mail over the internet.
By clicking on the "I understand and agree" button below, the user acknowledges that:
We are not liable for any consequence of any action taken by the user relying on information provided under this website. In cases where the user has any legal issues, he/she must seek independent legal advice.
Overview:
As part of the convergence of banking regulations with Basel III standards, the Reserve Bank of India (“RBI”) has published draft guidelines on minimum capital requirements for market risk (“Draft Guidelines”).
Technical Details:
1) The Draft Guidelines distinguish between the banking book and the trading book. It lists down the instruments that can be included in the trading book (which are subject to market risk capital requirements) and those to be included in the banking book (which are subject to credit risk capital requirements).
2) Banks are required to have clearly defined policies, procedures and documented practices for determining which instruments to include in or to exclude from the trading book for the purposes of calculating their regulatory capital requirements.
3) Final guidelines, after modifications, if any, and after comments from stakeholders will be applicable to all commercial banks, excluding local area banks, payments banks, regional rural banks, small finance banks and all types of co-operative banks. It will be effective from 1st April, 2024.
4) Comments on the Draft Guidelines are to be provided by 15th April, 2023.
For further details, please see:
DRAFTMARKETRISKFRAMEWORK372769A106CE4684B92E90D9F95A1B8E.PDF (rbi.org.in)
For any queries / clarifications, please feel free to ping us and we will be happy to chat:
● Ms. Smrithi Nair (smrithi.nair@jclex.com)
● Ms. Aashka Shah (aashka.shah@jclex.com)