Exotic derivatives can make GIFT a viable global financial hub

Experts say it is about time RBI lift the ban on such derivatives but there aren't enough natural safeguards if the deals are misused by writers and marketers of the contractors

The Reserve Bank of India (RBI) is contemplating bringing back exotic derivatives, a move that may finally establish Gujarat International Finance Tec-City (GIFT) as a viable global financial hub.

According to a media report, RBI governor Shaktikanta Das is contemplating lifting the ban on exotic derivative deals that the central bank had banned a decade ago.

Experts say it is about time the central bank does so but there aren't enough natural safeguards if the deals are misused by writers and marketers of the contracts. Therefore, the RBI may have to outrightly ban, or limit exposure to such products for