Supreme Court: Past Ad Hoc Service Counts for Pension, Not Seniority Against Direct Recruits  ||  SC: CPC Amendment Allowed When New Facts and Reliefs Directly Relate to Existing Dispute  ||  SC: Governing Law Clause Relevant to Determine Arbitral Seat When Two Venues Are Named  ||  Supreme Court: Section 161 CrPC Statements Can Be Considered at Cognizance Stage, Not at Trial  ||  Bombay High Court Directs Release of Protesters Held over Anti-ECI Agitations  ||  Kerala High Court Orders State to Pay Rs. 21,000 Post-Surgery Assistance to Transgender Person  ||  Madras High Court: DVAC Not Entitled to Blanket RTI Exemption in Corruption Cases  ||  Karnataka High Court Strikes Down Enhanced SC/ST Quota for Breaching 50% Reservation Cap  ||  Delhi HC: First-Come, First-Served Policy for Ramleela Ground Allotment is Unfair  ||  Kerala HC Upholds Automatic Revocation of Christian Wills on Marriage under S.69 Succession Act    

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