Simplified hedge transactions allowed eligible non-individual entities to manage permitted foreign-currency and rupee exchange-rate exposures. Regulation 5C, omitted with effect from 3 March 2020, had permitted specified non-individual resident and non-resident entities to undertake hedge ... Summary
Simplified hedge transactions allowed eligible non-individual entities to manage permitted foreign-currency and rupee exchange-rate exposures.
Regulation 5C, omitted with effect from 3 March 2020, had permitted specified non-individual resident and non-resident entities to undertake hedge transactions under simplified procedures. Resident entities with foreign-currency exposures and non-resident entities with rupee exposures could hedge underlying exchange-rate risk arising from transactions permitted under the Foreign Exchange Management Act, 1999, or instruments issued under it. The permission operated notwithstanding specified derivative-contract provisions and remained subject to simplified terms and conditions prescribed through directions.
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