Cost reduction structures allowed to hedge exchange rate risk for trade, external commercial borrowings and specified domestic loans. Permits use of cost reduction structures in OTC foreign exchange derivatives to hedge exchange rate risk for trade transactions, External Commercial Borrowings, and extends that permission to foreign currency loans availed domestically against FCNR(B) deposits, with regulatory amendments to the FEMA derivative regulations to be notified separately.
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.
Cost reduction structures allowed to hedge exchange rate risk for trade, external commercial borrowings and specified domestic loans.
Permits use of cost reduction structures in OTC foreign exchange derivatives to hedge exchange rate risk for trade transactions, External Commercial Borrowings, and extends that permission to foreign currency loans availed domestically against FCNR(B) deposits, with regulatory amendments to the FEMA derivative regulations to be notified separately.
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