Section 45W - Power to regulate transactions in derivatives, money market instruments, etc, Section 45X - Duty to comply with directions and furnish information : RBI Act 1934

What is the Power to regulate transactions in derivatives, money market instruments, etc? What is the Duty to comply with directions and furnish information? Section 45W and 45X of Reserve Bank of India Act 1934

 

Section 45-W of RBI Act 1934 : "Power to regulate transactions in derivatives, money market instruments, etc"

(1) The Bank may, in public interest, or to regulate the financial system of the country to its advantage, determine the policy relating to interest rates or interest rate products and give directions in that behalf to all agencies or any of them, dealing in securities, money market instruments, foreign exchange, derivatives, or other instruments of like nature as the Bank may specify from time to time :

 

 

Provided that the directions issued under this sub-section shall not relate to the procedure for execution or settlement of the trades in respect of the transactions mentioned therein, on the Stock Exchanges recognised under section 4 of the Securities Contracts (Regulation) Act, 1956 (42 of 1956).

(2) The Bank may, for the purpose of enabling it to regulate agencies referred to in sub-section (1), call for any information, statement or other particulars from them, or cause an inspection of such agencies to be made.

 

Section 45-X of RBI Act 1934 : "Duty to comply with directions and furnish information"

It shall be the duty of every director or member or other body for the time being vested with the management of the affairs of the agencies referred to in section 45W to comply with the directions given by the Bank and to submit the information or statement or particulars called for under that section,