India's RBI Penalizes 19 Banks For Violating Rules On Derivatives
April 26 2011 - 11:38AM
Dow Jones News
India's central bank Tuesday said it penalized 19 banks
including the country's top three lenders--State Bank of India
(500112.BY), ICICI Bank Ltd. (532174.BY) and HDFC Bank Ltd.
(500180.BY)--for failing to comply with rules on derivatives.
The penalty, ranging from 500,000 Indian rupees ($11,234) to
INR1.5 million ($33,700), was imposed for violation of rules such
as failure to carry out due diligence in regard to suitability of
products and selling derivative products to users not having risk
management policies, the central bank said in a notification.
The list of penalized banks also includes the local units of
Barclays PLC (BARC.LN), BNP Paribas S.A. (BNP.FR), Citigroup Inc.
(C), Credit Agricole S.A. (ACA.FR), Royal Bank of Scotland Group
PLC (RBS.LN), Standard Chartered PLC (STAN.LN), Bank of America
Corp. (BAC), Deutsche Bank AG (DB), Hongkong and Shanghai Banking
Corp. Ltd. and JPMorgan Chase & Co. (JPM).
The lenders were not immediately available for comment.
-By Nupur Acharya; Dow Jones Newswires; +91-22-61456117;
nupur.acharya@dowjones.com