Monetary policy: SPDs can offer all foreign exchange trade facilities

Decision comes after requests from foreign players; scope of existing licence was restrictive, say primary dealers

The Reserve Bank of India’s (RBI’s) decision on Friday to enable standalone primary dealers (SPDs) to offer the full range of market-making facilities in the foreign exchange market was primarily driven by requests from foreign primary dealerships, sources told Business Standard.

The move will expand commercial business opportunities for foreign primary dealers, which already have a strong network of overseas clients, the sources said.

“It is proposed to enable SPDs to offer all foreign exchange market-making facilities as currently permitted to Category-I authorised dealers, subject to prudential guidelines,” the RBI said in its statement on developmental and regulatory policies on