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of Regulator amends prior guidance on merchanting trade transactions to extend the permitted period for outlay of foreign exchange from four months to six months while keeping all other conditions unchanged; the commencement and completion rules for merchanting trade remain as previously prescribed (date of first shipment/export receipt or import payment and date of last shipment/export receipt or import payment, respectively). The change is effective immediately; authorised dealer Category-I banks must notify their customers. The directions are issued under FEMA and do not affect other statutory permissions.
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