Supreme Court Flags Excess Records as Cause of Delays in Corruption Case Prosecutions  ||  Supreme Court: Outgoing Partner’s Share Valued on Assessment Date, Not Dissolution Date  ||  Supreme Court Acquits Two Murder Convicts, Finds Prosecution Story Suspicious  ||  SC Restores SEBI Fraud Proceedings against Vedanta over 2014 Share Buyback  ||  CCI Rejects Kerala Private Bus Operators’ Challenge to Free KSRTC Travel for Women  ||  Chhattisgarh HC: Sharia Body can't Decide Muslim Woman's Marital Status or End Marriage  ||  MP High Court: Adult Woman Can Become Jain Saadhvi Despite Parents’ Opposition  ||  MP High Court Quashes 70%-80%-90% Pay Rule for Class III, IV Staff during Probation  ||  SC: Pre-2015 NH Act Awards Must Follow 1894 Act for Solatium and Interest  ||  SC: Service Rendered Before Regularization Must Be Counted for Pension Benefits    

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