Commodity hedging by SEZ entities allowed under stand alone restriction, with off set hedges and strict operational controls. Entities in Special Economic Zones may hedge import/export commodity price risk in international exchanges on a stand-alone basis, permitting only off-set hedges using exchange-traded futures and options (purchases only) and, where warranted, limited OTC contracts; authorised dealers must monitor for speculative/arbitrage activity. Corporates must open a Special Account for hedging flows, provide broker month-end reports countersigned by the Financial Controller to verify physical backing, reconcile broker statements within three months, and furnish an annual statutory auditor certificate confirming compliance and adequate internal controls.
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Commodity hedging by SEZ entities allowed under stand alone restriction, with off set hedges and strict operational controls.
Entities in Special Economic Zones may hedge import/export commodity price risk in international exchanges on a stand-alone basis, permitting only off-set hedges using exchange-traded futures and options (purchases only) and, where warranted, limited OTC contracts; authorised dealers must monitor for speculative/arbitrage activity. Corporates must open a Special Account for hedging flows, provide broker month-end reports countersigned by the Financial Controller to verify physical backing, reconcile broker statements within three months, and furnish an annual statutory auditor certificate confirming compliance and adequate internal controls.
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