Supreme Court Rebukes RBI for Remaining a Bystander as YES Bank Operated Clandestinely  ||  Supreme Court: Lower Fresh Bids Alone Cannot Justify Cancellation of an Auction  ||  Supreme Court Directs Delhi Police to Produce Section 163 BNSS Orders and Preserve CCTV Footage  ||  Supreme Court Affirms Menstrual Hygiene as a Fundamental Right, Warns States of Contempt  ||  Supreme Court Flags AI-Generated Fake Judgments Submitted in a Party’s Case Compilation  ||  Karnataka High Court: Vijay Mallya’s Flamboyant Lifestyle Hinders Settlement of Bank Claims  ||  Delhi High Court: Women can be Booked for Gang Rape without Physically Committing it  ||  Delhi High Court: Litigants Must Track Their Cases and Cannot Blame Lawyers for Their Own Inaction  ||  Allahabad High Court: Contract Workers Must Prove Work Parity With Regular Staff for Equal Pay  ||  Allahabad High Court Directs UP Trial Courts to Decide Maintenance Execution Cases Within Six Months    

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