Foreign exchange risk management relaxations expand authorised dealers' ability to offer swaps, overseas investments and forward covers subject to prudential controls. Reserve Bank relaxes limits: authorised dealers may offer foreign currency rupee swaps to customers for hedging without the earlier specified market access caps (caps still apply where swaps create market supply); overseas investment caps are withdrawn in favour of Board approved limits; caps on forward bookings based on past trade performance are increased and annual rebooking caps for near term exposures removed, with rebooking restrictions for exposures beyond one year and cancelled long term swaps; timing restriction on hedging Tier I capital removed; forward cover to non residents for inward investments permitted subject to verification.
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Foreign exchange risk management relaxations expand authorised dealers' ability to offer swaps, overseas investments and forward covers subject to prudential controls.
Reserve Bank relaxes limits: authorised dealers may offer foreign currency rupee swaps to customers for hedging without the earlier specified market access caps (caps still apply where swaps create market supply); overseas investment caps are withdrawn in favour of Board approved limits; caps on forward bookings based on past trade performance are increased and annual rebooking caps for near term exposures removed, with rebooking restrictions for exposures beyond one year and cancelled long term swaps; timing restriction on hedging Tier I capital removed; forward cover to non residents for inward investments permitted subject to verification.
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