Forward contract booking limits for importers and exporters widened; excess hedges must be deliverable and non cancellable under regulatory rules. Authorised Dealer Category I banks may allow importers and exporters to book forward contracts on declaration of exposure and past performance (computed as the higher of the three year average or the prior year's turnover), with eligible limits computed separately for imports and exports. Forward contracts booked beyond the eligible limit up to a regulatory threshold must be on a deliverable basis and cannot be cancelled; aggregate bookings during the year and outstanding at any time should not exceed the eligible limit and reporting requirements continue to apply.
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Provisions expressly mentioned in the judgment/order text.
Forward contract booking limits for importers and exporters widened; excess hedges must be deliverable and non cancellable under regulatory rules.
Authorised Dealer Category I banks may allow importers and exporters to book forward contracts on declaration of exposure and past performance (computed as the higher of the three year average or the prior year's turnover), with eligible limits computed separately for imports and exports. Forward contracts booked beyond the eligible limit up to a regulatory threshold must be on a deliverable basis and cannot be cancelled; aggregate bookings during the year and outstanding at any time should not exceed the eligible limit and reporting requirements continue to apply.
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