J&K&L High Court: Maternity Leave is a Constitutional Right and Cannot be Treated as State Charity  ||  P&H High Court: Second Anticipatory Bail Plea is Not Maintainable After Supreme Court Rejection  ||  Bombay High Court: No Prior Sanction is Required to Prosecute Police For Custodial Assault  ||  Allahabad High Court: Strict Proof of Marriage is Unnecessary if Couple Lived as Husband and Wife  ||  Delhi High Court: UP Passport Disputes Cannot be Filed in Delhi Only Because MEA is Based There  ||  Bombay High Court: Revenue Officers Cannot Decide Caste Status to Remove Tribal Land Protections  ||  Calcutta High Court: Punjab National Bank Liable to Compensate Farmers For Crop Insurance Lapse  ||  Calcutta High Court: Joint Settlement of Liquor Licence is Allowed if All Eligible Heirs Consent  ||  Delhi High Court Holds Multiple Sclerosis is a Specified Disability under the RPWD Act  ||  Allahabad High Court: An Alibi Must be Proved at Trial and Cannot be Accepted by the IO Alone    

Hedging of Foreign Exchange Risk - Final Directions- (Reserve Bank of India) (07 Apr 2020)

MANU/RPRL/0060/2020

Banking

Draft regulations reviewing facilities for "Hedging of Foreign Exchange Risk by Residents and Non-Residents" were released for public comments in February 2019. As stated in the Statement on Developmental and Regulatory Policies dated December 5, 2019, based on the public comments received and the recommendations of the Task Force on Offshore Rupee Markets, the directions have now been finalised. Pursuant to the notification of the proposed changes to the Foreign Exchange Management Act (FEMA) Regulations in the Gazette of India, final directions are being issued today, which shall come into effect from June 1, 2020.

The directions aim to ease access to the domestic foreign exchange derivative markets, inter alia, through: merging facilities for residents and non-residents into a single unified facility for all users; allowing users having valid exposures to hedge the same by using any available instrument introducing facility to hedge anticipated exposures; and simplifying procedures for authorised dealers to offer foreign exchange derivatives.

The directions shall replace the existing directions in Part A - Section I and II of the Master Direction on Risk Management and Interbank Dealings.

Tags : FOREIGN EXCHANGE RISK   HEDGING   FINAL DIRECTIONS  

Share :        

Disclaimer | Copyright 2026 - All Rights Reserved