RBI issued draft guidelines for minimum capital requirements for market risk

Market events, changes in the liquidity of a financial instrument, or a change of trading intent alone are not valid reasons for reassigning an instrument to a different book. When shifting positions, banks shall ensure that all the mandated standards are observed. But shifting between books is possible if be approved by the board of the bank and RBI after a thoroughly documented process and determined by internal review to be in compliance with the bank's policies and with prior RBI.

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