Forward cover limits for Foreign Institutional Investors increased, permitting broader rebooking of cancelled contracts under the FEMA framework. FIIs are authorised to cancel and rebook forward cover contracts up to an enhanced threshold of ten per cent of the market value of the portfolio as at the beginning of the financial year; other operational guidelines and terms and conditions remain unchanged. AD Category I authorised dealer banks must inform their constituents and customers. The direction is issued under the Foreign Exchange Management Act and is without prejudice to other statutory permissions or approvals.
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Provisions expressly mentioned in the judgment/order text.
Forward cover limits for Foreign Institutional Investors increased, permitting broader rebooking of cancelled contracts under the FEMA framework.
FIIs are authorised to cancel and rebook forward cover contracts up to an enhanced threshold of ten per cent of the market value of the portfolio as at the beginning of the financial year; other operational guidelines and terms and conditions remain unchanged. AD Category I authorised dealer banks must inform their constituents and customers. The direction is issued under the Foreign Exchange Management Act and is without prejudice to other statutory permissions or approvals.
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