Conversion of domestic-currency ECB into foreign-currency liability is prohibited, including via derivatives assuming forex risk. Entities availing external commercial borrowings denominated in domestic currency are prohibited from converting the resulting liability into a foreign currency liability or otherwise transferring the currency exposure, including by entering into derivative contracts or other arrangements that assume or shift foreign exchange risk.
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.
Conversion of domestic-currency ECB into foreign-currency liability is prohibited, including via derivatives assuming forex risk.
Entities availing external commercial borrowings denominated in domestic currency are prohibited from converting the resulting liability into a foreign currency liability or otherwise transferring the currency exposure, including by entering into derivative contracts or other arrangements that assume or shift foreign exchange risk.
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