Stanchart India says it offers structured products only to eligible clients after report on lapses
Standard Chartered is facing RBI’s scrutiny after lapses were spotted in the sale of derivatives and problems identified in the bank’s risk controls, people familiar with the matter said.RBI raised concerns about processes at the London-based lender following sales to small and medium enterprises of target redemption forwards, a product that can cause significant losses. Buyers of those contracts were not adequately informed about the risks involved, the people said. “RBI conducts annual inspection of banks,” a StanChart spokesman said in a statement. “While we don’t want to comment on specifics, observations, if any, are highlighted and addressed as part of normal process.”
