Hedging INR trade exposures: central treasuries may contract with authorized dealer banks under prescribed models, documentation, and settlement rules. Non residents and their central treasuries may hedge INR invoiced trade exposures with AD Category I banks in India under two models: Model I (via an overseas bank correspondent) and Model II (direct dealing with the AD bank). AD banks must verify underlying trade documentation, obtain prescribed undertakings and KYC/AML certification, confine hedge amount and tenor to the underlying transaction and regulatory limits, settle via Nostro/Vostro accounts, prohibit rebooking of cancelled contracts while permitting a single rollover tied to extension of the underlying transaction, and report Model II contracts to the trade repository.
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.
Hedging INR trade exposures: central treasuries may contract with authorized dealer banks under prescribed models, documentation, and settlement rules.
Non residents and their central treasuries may hedge INR invoiced trade exposures with AD Category I banks in India under two models: Model I (via an overseas bank correspondent) and Model II (direct dealing with the AD bank). AD banks must verify underlying trade documentation, obtain prescribed undertakings and KYC/AML certification, confine hedge amount and tenor to the underlying transaction and regulatory limits, settle via Nostro/Vostro accounts, prohibit rebooking of cancelled contracts while permitting a single rollover tied to extension of the underlying transaction, and report Model II contracts to the trade repository.
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