https://www.taxtmi.com/circulars?id=55078 ECB borrowers must cover principal and coupon through financial hedges where mandated, with hedges starting when the liability is created and maintained to ensure continuous coverage. A minimum one-year tenor for hedges is required with periodic rollovers to avoid any unhedged exposure. Natural hedge is acceptable only to the extent of matching projected inflows in the same currency within the same accounting year, net of outflows; revenue-indexing arrangements do not qualify. Designated authorised dealer banks must verify compliance and update Master Direction procedures. en-us Mon, 07 Nov 2016 00:00:00 +0530 Tue, 08 Nov 2016 10:16:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/circulars?id=55078 ECB borrowers must cover principal and coupon through financial hedges where mandated, with hedges starting when the liability is created and maintained to ensure continuous coverage. A minimum one-year tenor for hedges is required with periodic rollovers to avoid any unhedged exposure. Natural hedge is acceptable only to the extent of matching projected inflows in the same currency within the same accounting year, net of outflows; revenue-indexing arrangements do not qualify. Designated authorised dealer banks must verify compliance and update Master Direction procedures. Circulars FEMA Mon, 07 Nov 2016 00:00:00 +0530 https://www.taxtmi.com/circulars?id=55078