Hedging IPO flows: FIIs may use foreign currency-rupee swaps for ASBA subscriptions under specified amount and tenor limits. FIIs are permitted to use foreign currency-rupee swaps solely to hedge transient IPO-related flows under the ASBA mechanism, subject to limits: swap amount must not exceed the proposed IPO investment, tenor is limited to thirty days, cancelled contracts cannot be rebooked and rollovers are not permitted. AD Category I banks must convey the circular to constituents; directions are issued under the foreign exchange statutory framework with separate amendments to the derivatives regulations to follow.
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.
Hedging IPO flows: FIIs may use foreign currency-rupee swaps for ASBA subscriptions under specified amount and tenor limits.
FIIs are permitted to use foreign currency-rupee swaps solely to hedge transient IPO-related flows under the ASBA mechanism, subject to limits: swap amount must not exceed the proposed IPO investment, tenor is limited to thirty days, cancelled contracts cannot be rebooked and rollovers are not permitted. AD Category I banks must convey the circular to constituents; directions are issued under the foreign exchange statutory framework with separate amendments to the derivatives regulations to follow.
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