Standard Chartered Denies Derivatives Sales Lapses Amid RBI Scrutiny

Standard Chartered has firmly denied any lapses in its sales of derivative products, amid reports of scrutiny by the Reserve Bank of India (RBI). The denial follows a Bloomberg News report claiming the RBI raised concerns over sales to small and medium-sized enterprises.

The controversy centers around target redemption forwards, a derivative product potentially leading to substantial losses. The report suggested that buyers were not properly informed about the risks. In response, Standard Chartered's spokesperson refuted Bloomberg's claims, labeling them speculative and inaccurate.

According to the bank, all structured products are offered only to eligible clients, maintaining high standards of compliance, transparency, and customer focus. The RBI has not commented on the matter as of now.

(With inputs from agencies.)