Rupee-based forward hedging permits Overseas Corporate Bodies to protect specified existing investment, dividend, and deposit exposures. Regulation 6 permits an Overseas Corporate Body to enter into a rupee-based forward contract with an Authorised Dealer in India to hedge specified ... Summary
Rupee-based forward hedging permits Overseas Corporate Bodies to protect specified existing investment, dividend, and deposit exposures.
Regulation 6 permits an Overseas Corporate Body to enter into a rupee-based forward contract with an Authorised Dealer in India to hedge specified existing exposures. These include dividends on existing Indian share investments, balances in existing Foreign Currency Non-Resident or Non-resident External Rupee term deposit accounts, and eligible existing Portfolio Investment Scheme investments. Hedging of Portfolio Investment Scheme investments is subject to the applicable terms and conditions governing derivative contracts.
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