Non-deliverable derivative contracts: onshore INR NDDCs now permitted for resident non-retail hedging, cash-settlement allowed in local or foreign currency. AD Category I banks operating IFSC Banking Units may offer NDDCs involving the Rupee to resident non retail users for hedging, cash settled in the Rupee. Cash settlement of NDDC transactions between AD Category I banks and between an AD Category I bank and a person resident outside India is permitted in the Rupee or any foreign currency. The Master Direction is amended to define NDDC as an OTC foreign exchange derivative contract that is cash settled without delivery of the notional underlying currencies.
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.
Non-deliverable derivative contracts: onshore INR NDDCs now permitted for resident non-retail hedging, cash-settlement allowed in local or foreign currency.
AD Category I banks operating IFSC Banking Units may offer NDDCs involving the Rupee to resident non retail users for hedging, cash settled in the Rupee. Cash settlement of NDDC transactions between AD Category I banks and between an AD Category I bank and a person resident outside India is permitted in the Rupee or any foreign currency. The Master Direction is amended to define NDDC as an OTC foreign exchange derivative contract that is cash settled without delivery of the notional underlying currencies.
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