Merchanting trade timeframe extended for foreign exchange outlay, easing management of merchanting transactions under FEMA. The period for outlay of foreign exchange in Merchanting Trade Transactions has been increased to a six month window to facilitate efficient management; all other directions, including commencement and completion definitions based on shipment/export receipt and import payment, remain unchanged. The change is effective immediately for Authorised Dealer Category I banks and is issued under the Foreign Exchange Management Act without prejudice to other statutory permissions.