Risk Management and Inter-bank Dealings: Operational flexibility for Indian subsidiaries of Non-resident Companies

Risk Management and Inter-bank Dealings: Operational flexibility for Indian subsidiaries of Non-resident Companies https://www.taxtmi.com/circulars?id=55765 Non resident parents or their treasuries may enter into FCY INR derivative contracts with AD Category I banks to hedge currency risk of and on behalf of their Indian subsidiaries, subject to Reserve Bank terms. Transactions must be governed by a tri partite agreement detailing roles and settlement; non resident entities must be in FATF or equivalent jurisdictions; AD banks must perform KYC/AML, monitor underlying exposures, ensure profits/losses are settled in the subsidiary's accounts with auditor certification, and report contracts to CCIL with a special tag. en-us Tue, 21 Mar 2017 00:00:00 +0530 Tue, 21 Mar 2017 18:37:00 +0530 TaxTMI RSS Generator Risk Management and Inter-bank Dealings: Operational flexibility for Indian subsidiaries of Non-resident Companies https://www.taxtmi.com/circulars?id=55765 Non resident parents or their treasuries may enter into FCY INR derivative contracts with AD Category I banks to hedge currency risk of and on behalf of their Indian subsidiaries, subject to Reserve Bank terms. Transactions must be governed by a tri partite agreement detailing roles and settlement; non resident entities must be in FATF or equivalent jurisdictions; AD banks must perform KYC/AML, monitor underlying exposures, ensure profits/losses are settled in the subsidiary's accounts with auditor certification, and report contracts to CCIL with a special tag. Circulars FEMA Tue, 21 Mar 2017 00:00:00 +0530 https://www.taxtmi.com/circulars?id=55765