RBI Probes Standard Chartered Over Derivatives Sales and Risk-Control Lapses

Standard Chartered Plc is under regulatory examination by the Reserve Bank of India after supervisors uncovered lapses in the bank’s sale of derivatives and deficiencies in its risk-management controls, according to people familiar with the matter. Regulators are reviewing whether the shortcomings could expose clients to significant losses and are assessing the effectiveness of the London-based lender’s internal safeguards. The scrutiny adds to a series of compliance challenges facing global banks operating in the Indian market.