ECB hedging requirement: MFIs and NGOs must fully hedge external borrowings; authorised banks ensure compliance at drawdown. Extant ECB guidelines continue to apply to MFIs and NGOs accessing External Commercial Borrowings under the Automatic Route, and such ECBs must be fully hedged. Designated Authorised Dealer Category I banks are required to ensure at the time of drawdown that the borrower's forex exposure is fully hedged and to notify their constituents; the directions are issued under the foreign exchange statutory framework without prejudice to other required approvals.
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.
ECB hedging requirement: MFIs and NGOs must fully hedge external borrowings; authorised banks ensure compliance at drawdown.
Extant ECB guidelines continue to apply to MFIs and NGOs accessing External Commercial Borrowings under the Automatic Route, and such ECBs must be fully hedged. Designated Authorised Dealer Category I banks are required to ensure at the time of drawdown that the borrower's forex exposure is fully hedged and to notify their constituents; the directions are issued under the foreign exchange statutory framework without prejudice to other required approvals.
Full Summary is available for active users!
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
of 
TaxTMI 
