FII Hedging Mandate: Banks must obtain sub account holder mandate and verify forward cover against market value. Authorised Dealer Category I banks must verify periodically that forward cover outstanding for FIIs is backed by corresponding underlying exposures. If an FII hedges a sub account holder's exposure, the bank must obtain and verify a clear written mandate from the sub account holder and confirm the contract's eligibility by reference to the market value of securities in that sub account.
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FII Hedging Mandate: Banks must obtain sub account holder mandate and verify forward cover against market value.
Authorised Dealer Category I banks must verify periodically that forward cover outstanding for FIIs is backed by corresponding underlying exposures. If an FII hedges a sub account holder's exposure, the bank must obtain and verify a clear written mandate from the sub account holder and confirm the contract's eligibility by reference to the market value of securities in that sub account.
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