Freight risk hedging permits eligible Indian residents and specified companies to access offshore derivative contracts subject to prescribed authorisation. Freight-risk hedging permits a person resident in India, upon application and subject to necessary conditions, to enter freight derivative contracts ... Summary
Freight risk hedging permits eligible Indian residents and specified companies to access offshore derivative contracts subject to prescribed authorisation.
Freight-risk hedging permits a person resident in India, upon application and subject to necessary conditions, to enter freight derivative contracts outside India to hedge freight-risk exposure. A specifically authorised dealer may also permit resident oil refining or shipping companies to enter such offshore contracts. These permissions are subject to stipulated terms and conditions, and authorised dealer category-I banks must act in accordance with applicable directions and guidelines.
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