Commodity hedging permits residents and SEZ units to use foreign commodity contracts to hedge price risk under RBI conditions. Regulation 6 permits residents to enter into commodity exchange contracts outside India to hedge commodity price risk with Reserve Bank permission under ... Summary
Commodity hedging permits residents and SEZ units to use foreign commodity contracts to hedge price risk under RBI conditions.
Regulation 6 permits residents to enter into commodity exchange contracts outside India to hedge commodity price risk with Reserve Bank permission under Schedule III and applicable terms; authorised dealer banks may permit resident companies to undertake such hedges subject to Reserve Bank stipulations; SEZ units may enter export/import hedges on a stand-alone basis isolated from parent or related entity financial contracts.
Full Summary is available for active users!
Note: It is a system-generated summary and is for quick reference only.