Comprehensive OTC Derivative trade reporting is in place. II.II  Requirements for capital and collateral  14. Requirements of capital and collateral are prudential in nature and ensure that the market participants do not take undue counterparty risks while trading in the market. Capital requirements act as buffer against various risks including credit and market risks.
Indian banks have been well capitalised and have been conforming to the international best practices with regard to bank capital as delineated by the Basel prescriptions. We have announced migration to Basel III to strengthen the banks’ capital base and improve their ability to withstand systemic shocks. The norms would come into effect in a phased manner.