Risk Management and Inter-bank Dealings – Hedging of foreign exchange risk

Risk Management and Inter-bank Dealings – Hedging of foreign exchange risk https://www.taxtmi.com/circulars?id=63724 Regulatory directions revise the hedging framework under FEMA by defining key terms, prescribing that Authorised Dealers classify users as retail or non-retail and offer derivative products accordingly, and by requiring hedges to correspond to contracted or anticipated exposures. ADs must ensure notional and tenor align with exposures, permit cancellations/rebookings with specified treatment of net gains on anticipated exposures, apply suitability and appropriateness policies, and, for large exchange positions, coordinate with exchanges and designated ADs/custodians while users remain liable for compliance. en-us Tue, 07 Apr 2020 00:00:00 +0530 Wed, 08 Apr 2020 09:29:00 +0530 TaxTMI RSS Generator Risk Management and Inter-bank Dealings – Hedging of foreign exchange risk https://www.taxtmi.com/circulars?id=63724 Regulatory directions revise the hedging framework under FEMA by defining key terms, prescribing that Authorised Dealers classify users as retail or non-retail and offer derivative products accordingly, and by requiring hedges to correspond to contracted or anticipated exposures. ADs must ensure notional and tenor align with exposures, permit cancellations/rebookings with specified treatment of net gains on anticipated exposures, apply suitability and appropriateness policies, and, for large exchange positions, coordinate with exchanges and designated ADs/custodians while users remain liable for compliance. Circulars FEMA Tue, 07 Apr 2020 00:00:00 +0530 https://www.taxtmi.com/circulars?id=63724