Authorised dealer verification of underlying exposure now requires documentary satisfaction or Reserve Bank permission to transact derivatives. The amendment requires that the authorised dealer, through verification of documentary evidence, be satisfied about the genuineness of the underlying exposure, or act as otherwise permitted by the Reserve Bank, thereby setting documentary satisfaction of genuineness as the operative verification standard for foreign exchange derivative contracts.
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Authorised dealer verification of underlying exposure now requires documentary satisfaction or Reserve Bank permission to transact derivatives.
The amendment requires that the authorised dealer, through verification of documentary evidence, be satisfied about the genuineness of the underlying exposure, or act as otherwise permitted by the Reserve Bank, thereby setting documentary satisfaction of genuineness as the operative verification standard for foreign exchange derivative contracts.
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