For close-out netting to work, it needs to be legally enforceable in the jurisdiction in which the defaulting party is incorporated. Reserve Bank is examining the issue and would explore all the possible options including changing the legal framework to resolve the issue. V.V  Extraterritorial application of laws and harmonising global regulatory effort  46. Laws like Dodd Frank Act, EMIR, etc.
Geopolitical risks, as well as developments in global financial markets and emerging market economies, may have the potential to affect economic conditions negatively. Other downside risks include weaker than expected domestic demand and insufficient implementation of structural reforms in euro area countries, as well as weaker export growth.