Business Daily from THE HINDU group of publications
Wednesday, Apr 09, 2008
ePaper | Mobile/PDA Version
Business Daily from THE HINDU group of publications Wednesday, Apr 09, 2008 ePaper | Mobile/PDA Version |
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Corporate
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Courts/Legal Issues Money & Banking - Derivatives Markets Axis Bank’s counter Our Bureau Chennai, April 8 In its counter to the plaint filed by Rajshree Sugars & Chemicals Ltd, Axis Bank has said: Suit is not maintainable before the Madras High Court as the jurisdiction for any disputes as per the agreement is Mumbai. The transaction in question is a derivative transaction in compliance with rules and regulations. The plaintiff has in the past entered into several OTC derivative transactions with the bank. The transactions are in the nature of swaps and options. The option transactions have contained knock-in and knock-out features even under such past transactions. The transaction which is the subject matter of this suit – OPT 727 – is a currency option. Currency options are expressly permitted by the RBI. It is denied that OPT 727 is an exotic transaction and based on the probable fluctuation of the dollar and Swiss Franc. It is denied that the deal is of a speculative nature. It is like any other deals entered into between the bank and the company. More Stories on : Courts/Legal Issues | Derivatives Markets | Forex | Sugar | Private Banks
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