Foreign exchange derivative contracts: amendments limit use to hedging contracted or anticipated exposures and set dealer monitoring requirements. Amendments redefine 'authorised dealer' and 'foreign exchange derivative contract', add definitions for contracted and anticipated exposure, currency risk, hedging and exchange traded currency derivatives, and delete several prior sub definitions. A person, resident or non resident, may enter into foreign exchange derivative contracts with an authorised dealer; Rupee involving contracts must be for hedging contracted or anticipated exposures unless RBI permits otherwise, and delivery settled Rupee transactions are confined to authorised dealers and permitted persons. Exchange traded contracts for hedging contracted exposure are allowed subject to designation of an authorised dealer for monitoring and disclosure obligations.
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.
Foreign exchange derivative contracts: amendments limit use to hedging contracted or anticipated exposures and set dealer monitoring requirements.
Amendments redefine 'authorised dealer' and 'foreign exchange derivative contract', add definitions for contracted and anticipated exposure, currency risk, hedging and exchange traded currency derivatives, and delete several prior sub definitions. A person, resident or non resident, may enter into foreign exchange derivative contracts with an authorised dealer; Rupee involving contracts must be for hedging contracted or anticipated exposures unless RBI permits otherwise, and delivery settled Rupee transactions are confined to authorised dealers and permitted persons. Exchange traded contracts for hedging contracted exposure are allowed subject to designation of an authorised dealer for monitoring and disclosure obligations.
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