The Reserve Bank of India (RBI) has amended its policies regarding the sale of derivative products, The Wall Street Journal reports. The new regulations discourage overseas banks from serving as market makers of a product that cannot be priced locally by them.

Banks will also need to ensure that buyers of derivative products are supported by the company’s board to implement the business. Companies engaging in such transactions will have to declare their loss at regular time periods and present a board resolution to the selling bank, adds Economic Times.

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