Mandate requirement for hedging: FIIs must obtain PN/ODI holder authorisation before entering rupee hedge contracts. If an FII wishes to hedge rupee exposure relating to securities against which it has issued Participatory Notes or Overseas Derivative Instruments, it must have a mandate from the PN/ODI holder; Authorised Dealer Category I banks must verify such mandates or, if verification is difficult, may accept a declaration from the FII describing the PN/ODI structure and confirming hedges are undertaken pursuant to specific client mandates.
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.
Mandate requirement for hedging: FIIs must obtain PN/ODI holder authorisation before entering rupee hedge contracts.
If an FII wishes to hedge rupee exposure relating to securities against which it has issued Participatory Notes or Overseas Derivative Instruments, it must have a mandate from the PN/ODI holder; Authorised Dealer Category I banks must verify such mandates or, if verification is difficult, may accept a declaration from the FII describing the PN/ODI structure and confirming hedges are undertaken pursuant to specific client mandates.
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