Question

Which of the following businesses was inserted into Section 17 of the RBI Act, 1934 by the Amendment Act of 2006, with an Explanation defining the underlying variables?

Q: Answer-Which of the following businesses was inserted into Section 17 of the RBI Act, 1934 by the Amendment...

Section 176A, inserted by Act 26 of 2006 with effect from 9-1-2007, authorises the Bank to deal in derivatives and, with the approval of the Central Board, in any other financial instrument. The Explanation defines a derivative as an instrument settled at a future date whose value is derived from variables such as interest rate, price of securities, foreign exchange rate, an index of rates or prices, credit rating, or the price of gold or silver. The business inserted in 2006 is dealing in derivatives.