Indian regulator warns of action if collateral in share trading is misused.
Global Banking News-June 26, 2015--Indian regulator warns of action if collateral in share trading is misused
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Global Banking News - 26 June 2015
The Reserve Bank of India has said that it could be prompted to take action if the use of collateral for purposes, other than those it is intended for, by the clearing member is not contained.
In its Financial Stability Report, the central bank said that such issues need to be monitored to take corrective actions. The RBI observed that clearing members or brokers have to maintain records of collateral transfers from a client and this was subject to inspection by SEBI/stock exchanges.
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