Supreme Court: Non-Signatory Can Be Bound By an Agreement if Involved in Performing the Contract  ||  Supreme Court: 'Washed-Off Theory' Inapplicable in Assessing Employee Retention Suitability  ||  SC Directs States/UTs to Grant Ex-Servicemen Quota to Cadets Disabled 40% or More in Training  ||  Delhi High Court Quashed Cases over Allegations of Excess Lead Content in Maggi Noodles  ||  Madras High Court: Advocates Cannot Hinder Police From Producing Arrested Lawyers Before a Court  ||  Allahabad HC Awarded Rs. 4.75 Lakh Compensation Over Illegal Vehicle Confiscation in a Beef Case  ||  Allahabad High Court: Strong Suspicion, Not Proof of Guilt, is Sufficient to Frame Charges  ||  Delhi HC: Prior Sanction Not Required Where Cognizance Preceded 2018 PC Act Amendment  ||  Bombay High Court: The Notion of a "Perfect Victim" in Rape Cases is a Myth  ||  Allahabad High Court: Prior Agreement With Inquiry Report Doesn't Vitiate Disciplinary Proceedings    

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