Cross-currency option cost reduction structures permitted to hedge trade and external commercial borrowings with authorised dealers under amended rules. The amendment inserts American Depository Receipts into Schedule I, removes a proviso restricting net inflow of premium for certain cost-effective risk reduction strategies, and adds permission for residents to enter into cross-currency option cost reduction structures (excluding the rupee) and foreign currency-rupee option cost reduction structures with authorised dealers to hedge exchange risk from trade transactions or external commercial borrowings, subject to Reserve Bank stipulated terms and conditions, with specified retrospective effect.
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.
Cross-currency option cost reduction structures permitted to hedge trade and external commercial borrowings with authorised dealers under amended rules.
The amendment inserts American Depository Receipts into Schedule I, removes a proviso restricting net inflow of premium for certain cost-effective risk reduction strategies, and adds permission for residents to enter into cross-currency option cost reduction structures (excluding the rupee) and foreign currency-rupee option cost reduction structures with authorised dealers to hedge exchange risk from trade transactions or external commercial borrowings, subject to Reserve Bank stipulated terms and conditions, with specified retrospective effect.
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