Mumbai: London-based clearing house group LCH is in the process of applying to the Reserve Bank of India ( RBI ) for approval to function as a qualified central counterparty (QCCP) here to tap into the increasing local activity in derivatives markets. "It (LCH) has been in talks with the RBI recently regarding the setting up of a QCCP here and is awaiting the RBI approval," a source aware of the development said. "There has been a huge pick-up in offshore derivatives activity in India with a lot of large corporates looking to use that route for hedging. Earlier this month, the UK Treasury granted financial equivalence to RBI-authorised clearing houses, papers accessed by ET showed. In April, the RBI said that it had proposed to let banks with IFSC units provide non-deliverable foreign exchange derivatives using the rupee to residents in onshore markets.

Source: Economic Times June 26, 2023 02:39 UTC