Section 17(6A) in The Reserve Bank of India Act, 1934
(6A)dealing in derivatives, and, with the approval of the Central Board, in any other financial instrument.Explanation.— For the purposes of this clause, “derivative” means an instrument, to be settled at a future date, whose value is derived from change in one or a combination of more than one of the following underlyings, namely:—(a)interest rate,(b)price of securities of the Central Government or a State Government or of such securities of a local authority as may be specified in this behalf by the Central Government,(c)price of foreign securities,(d)foreign exchange rate,(e)index of rates or prices,(f)credit rating or credit index,(g)price of gold or silver coins, or gold or silver bullion, or(h)any other variable of similar nature;***
