Hedging cancellation flexibility now permits limited cancellable forward contracts, altering exporter/importer gain loss entitlement under foreign exchange rules. Forward contracts booked up to seventy five percent of the eligible hedging limit may be cancelled with the exporter/importer bearing losses or receiving gains; contracts booked in excess of that threshold must be fully deliverable and cannot be cancelled, meaning the exporter/importer will bear any loss on cancellation but will not be entitled to any gain. Eligibility for hedging continues to be based on historical export or import turnover, and Authorised Dealer Category I banks must notify their constituents.
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Provisions expressly mentioned in the judgment/order text.
Hedging cancellation flexibility now permits limited cancellable forward contracts, altering exporter/importer gain loss entitlement under foreign exchange rules.
Forward contracts booked up to seventy five percent of the eligible hedging limit may be cancelled with the exporter/importer bearing losses or receiving gains; contracts booked in excess of that threshold must be fully deliverable and cannot be cancelled, meaning the exporter/importer will bear any loss on cancellation but will not be entitled to any gain. Eligibility for hedging continues to be based on historical export or import turnover, and Authorised Dealer Category I banks must notify their constituents.
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