Economics · Foreign Exchange and Derivatives
Consider the following statements regarding the policy intent and background of the regulatory updates to Non-Deliverable Forward (NDF) contracts and forex derivatives: 1. The policy framework for NDF contracts reflects a calibrated approach aimed at easing operational restrictions while maintaining strict safeguards against risk concentration and misuse. 2. The partial rollback of earlier regulatory restrictions was implemented following market feedback to ensure adequate liquidity and operational flexibility. 3. The initial restrictions were formulated with the primary objective of promoting related-party exposure and facilitating regulatory arbitrage in the derivative markets. Which of the statements given above is/are correct?
- 11, 2, and 3
- 22 and 3 only
- 31 and 2 only✓
- 41 only
Correct answer
1 and 2 only
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