Foreign exchange derivative contracts involving INR are restricted for related parties, with limited exceptions for rollovers and back-to-back transactions. Authorised Dealers are prohibited from undertaking foreign exchange derivative contracts involving INR with their related parties, except for cancellation and rollover of existing contracts and back-to-back transactions with non-related non-resident users under the Master Direction on Risk Management and Inter-Bank Dealings. The term related parties is to be understood by reference to Ind AS 24, IAS 24, or equivalent accounting standards, and the directions apply with immediate effect.
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.
Foreign exchange derivative contracts involving INR are restricted for related parties, with limited exceptions for rollovers and back-to-back transactions.
Authorised Dealers are prohibited from undertaking foreign exchange derivative contracts involving INR with their related parties, except for cancellation and rollover of existing contracts and back-to-back transactions with non-related non-resident users under the Master Direction on Risk Management and Inter-Bank Dealings. The term related parties is to be understood by reference to Ind AS 24, IAS 24, or equivalent accounting standards, and the directions apply with immediate effect.
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