Forward contract rebooking restriction now bars rebooking of cancelled forwards; deliverable hedges and reduced position limits follow. The circular withdraws the facility permitting cancellation and rebooking of forwards by residents; forwards once cancelled cannot be rebooked. Past performance hedging limits are reduced and such contracts must be fully deliverable, with no passing of exchange gains on cancellations to customers. Cash/tom/spot client transactions must be for actual remittance/delivery and non cancellable. FIIs may roll over forwards but cancelled contracts cannot be rebooked. Net Overnight Open Position Limits for Authorised Dealers are reduced and intra day limits must not exceed the approved NOOPL.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Forward contract rebooking restriction now bars rebooking of cancelled forwards; deliverable hedges and reduced position limits follow.
The circular withdraws the facility permitting cancellation and rebooking of forwards by residents; forwards once cancelled cannot be rebooked. Past performance hedging limits are reduced and such contracts must be fully deliverable, with no passing of exchange gains on cancellations to customers. Cash/tom/spot client transactions must be for actual remittance/delivery and non cancellable. FIIs may roll over forwards but cancelled contracts cannot be rebooked. Net Overnight Open Position Limits for Authorised Dealers are reduced and intra day limits must not exceed the approved NOOPL.
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