Exchange-traded currency derivatives hedging permission for non-residents was omitted after covering Rupee currency risk from permitted exposures. Regulation 5B was omitted with effect from 3 March 2020, removing the specific permission for persons resident outside India to enter into exchange-traded ... Summary
Exchange-traded currency derivatives hedging permission for non-residents was omitted after covering Rupee currency risk from permitted exposures.
Regulation 5B was omitted with effect from 3 March 2020, removing the specific permission for persons resident outside India to enter into exchange-traded currency derivatives for hedging Rupee currency risk. Previously, such transactions on a recognised stock exchange were permitted where the risk arose from a permitted current account transaction or from a permitted Rupee-denominated asset or liability. The transactions remained subject to conditions issued by the Reserve Bank of India.
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