NRI access to exchange traded currency derivatives permitted to hedge Rupee exposure; designated banks must monitor and report positions. Non resident Indians are permitted to transact in exchange traded currency derivatives to hedge Rupee currency risk from permitted current account transactions or Rupee denominated assets or liabilities, subject to terms and conditions. NRIs must designate an Authorised Dealer Category I bank to receive exchange/clearing transaction details, consolidate OTC and exchange positions, monitor aggregate exposure against underlying Rupee risk, and report transgressions; the onus of proving underlying exposure lies with the NRI and excess hedging may attract statutory penalties. Regulatory amendments and directions implement this framework.
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.
NRI access to exchange traded currency derivatives permitted to hedge Rupee exposure; designated banks must monitor and report positions.
Non resident Indians are permitted to transact in exchange traded currency derivatives to hedge Rupee currency risk from permitted current account transactions or Rupee denominated assets or liabilities, subject to terms and conditions. NRIs must designate an Authorised Dealer Category I bank to receive exchange/clearing transaction details, consolidate OTC and exchange positions, monitor aggregate exposure against underlying Rupee risk, and report transgressions; the onus of proving underlying exposure lies with the NRI and excess hedging may attract statutory penalties. Regulatory amendments and directions implement this framework.
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