Commodity hedging permissions expanded to allow specified domestic producers and ATF users to hedge select exposures in international markets. AD Category I banks authorised by the Reserve Bank may permit domestic producers/users to hedge price risk in aluminium, copper, lead, nickel and zinc in international exchanges using only standard exchange traded futures and options (purchases only), subject to limits based on historical purchases/sales and underlying economic exposure. Actual ATF users may hedge domestic purchase exposures in international markets and, if warranted, use OTC contracts against firm orders with documentary evidence. Boards must approve derivative policies, transactions must route through designated ADs, and authorised banks must report monthly to the Reserve Bank.
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.
Commodity hedging permissions expanded to allow specified domestic producers and ATF users to hedge select exposures in international markets.
AD Category I banks authorised by the Reserve Bank may permit domestic producers/users to hedge price risk in aluminium, copper, lead, nickel and zinc in international exchanges using only standard exchange traded futures and options (purchases only), subject to limits based on historical purchases/sales and underlying economic exposure. Actual ATF users may hedge domestic purchase exposures in international markets and, if warranted, use OTC contracts against firm orders with documentary evidence. Boards must approve derivative policies, transactions must route through designated ADs, and authorised banks must report monthly to the Reserve Bank.
Full Summary is available for active users!
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
of 
Join Channel
TaxTMI 
