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Commodities Briefing - Categorized | Futures and Options, Trading more

Should banks be allowed in commodity futures trading?: India’s experience

Posted on 29 August 2012

It may sound surprising to some people, but it’s true that banks are not allowed to trade in commodities in India. The banks are allowed to trade in financial instruments (such as shares, bonds and currencies) in securities market but the Banking Regulation Act of 1949 strictly prohibits banks (both domestic and foreign) from trading in goods and therefore they are not allowed to trade in commodity futures market.
The Section 8 of Banking Regulation Act clearly states that no bank shall “directly or indirectly deal in the buying or selling or bartering of goods, except in connection with the realisation of security given to or held by it.”……………………………………….Full Article: Source


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This post was written by:

VRS - who has written 34604 posts on Opalesque Commodities Briefing.


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