Commodity hedging permissions expanded: AD Category I banks may authorise corporate hedges in international markets under specified controls. Reserve Bank authorises all Authorised Dealer Category I banks to permit resident corporates to hedge price risk in international commodity exchanges/markets (excluding gold, silver, platinum) under a delegated route, with unlisted companies eligible subject to Annex guidelines; banks must ensure risk containment off set hedges, require a Special Account, verify broker reports, prevent speculative/arbitrage trades, obtain an annual statutory auditor certificate, and submit an annual list of corporates hedged to the Reserve Bank.
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Provisions expressly mentioned in the judgment/order text.
Commodity hedging permissions expanded: AD Category I banks may authorise corporate hedges in international markets under specified controls.
Reserve Bank authorises all Authorised Dealer Category I banks to permit resident corporates to hedge price risk in international commodity exchanges/markets (excluding gold, silver, platinum) under a delegated route, with unlisted companies eligible subject to Annex guidelines; banks must ensure risk containment off set hedges, require a Special Account, verify broker reports, prevent speculative/arbitrage trades, obtain an annual statutory auditor certificate, and submit an annual list of corporates hedged to the Reserve Bank.
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