Currency derivatives participation limited to FFMCs and ADs Category II as clients for hedging forex exposures. FFMCs and ADs Category II (excluding RRBs, LABs, UCBs and NBFCs) with a minimum net worth of Rs. 5 crore may participate as clients in designated currency futures and exchange traded currency options on recognised exchanges solely to hedge their underlying foreign exchange exposures; institutions in the excluded categories are to follow Reserve Bank departmental instructions, and non compliance engages penal provisions under the Foreign Exchange Management Act.
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.
Currency derivatives participation limited to FFMCs and ADs Category II as clients for hedging forex exposures.
FFMCs and ADs Category II (excluding RRBs, LABs, UCBs and NBFCs) with a minimum net worth of Rs. 5 crore may participate as clients in designated currency futures and exchange traded currency options on recognised exchanges solely to hedge their underlying foreign exchange exposures; institutions in the excluded categories are to follow Reserve Bank departmental instructions, and non compliance engages penal provisions under the Foreign Exchange Management Act.
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