Hedging permissions: registered FIIs may use foreign currency rupee swaps and non resident traders may hedge rupee invoiced trade under RBI terms. The Regulations add permissions in Schedule II allowing a registered FII to enter into foreign currency rupee swaps to hedge transient capital flows related to IPOs under ASBA, and permitting non resident importers/exporters to enter forward contracts with rupee as one currency or foreign currency rupee option contracts with an Authorised Dealer to hedge currency risk on rupee invoiced trade, each subject to terms and conditions prescribed by the Reserve Bank and deemed to commence retrospectively.
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 permissions: registered FIIs may use foreign currency rupee swaps and non resident traders may hedge rupee invoiced trade under RBI terms.
The Regulations add permissions in Schedule II allowing a registered FII to enter into foreign currency rupee swaps to hedge transient capital flows related to IPOs under ASBA, and permitting non resident importers/exporters to enter forward contracts with rupee as one currency or foreign currency rupee option contracts with an Authorised Dealer to hedge currency risk on rupee invoiced trade, each subject to terms and conditions prescribed by the Reserve Bank and deemed to commence retrospectively.
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