[Omitted] Foreign Exchange Derivative Contracts Permissible for a Person Resident Outside India

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.... 2. Omitted vide Notification No. 081/2003 dated 08-01-2003, w.e.f. 08-01-2003 before it was read as,  "the value of the hedge does not exceed 15% of the market value of the equity as at the close of business on 31st March 1999, converted at the rate of US $ 1 = Rs.42.43 plus the increase in market value/inflows after 31st March 1999 provided that the forward cover once taken shall be allowed to continue as long as it does not exceed the value of the underlying investment" 3. Renumbered vide Notification No. 081/2003 dated 08-01-2003, w.e.f. 08-01-2003 before it was read as, "(c)" 4. Renumbered vide Notification No. 081/2003 dated 08-01-2003, w.e.f. 08-01-2003&nbs....

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....dule II (See regulation 5) Foreign exchange derivative contracts permissible for a person resident outside India 1. A Registered Foreign Institutional Investor (FII) ^12[/Qualified Foreign Investor (QFI)] may enter into a forward contract with rupee as one of the currencies with an authorised dealer in India to hedge its exposure in India, Provided that - ^1[(a) the value of the hedge does not exceed the market value of the underlying debt or equity instruments, provided forward contracts once booked shall be allowed to continue to the original maturity even if the value of the underlying portfolio shrinks, for reasons other than sale of securities. (b) ^2[****] ^3[(b)] ^9[forward contracts....

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.... conditions specified in the proviso to paragraph 1 of this Schedule. ^6[2A. A non-resident Indians may, subject to conditions prescribed by the Reserve Bank of India from time to time, enter into cross currency (not involving the rupee) forward contracts to convert the balances held in FCNR (B) accounts in one foreign currency to another foreign currency in which FCNR (B) deposits are permitted to be maintained.] 3. 'Authorised dealers may offer forward contracts to persons resident outside India to hedge the investments made in India since January 1, 1993,subject to verification of the exposure in India. These forward contracts once cancelled are not eligible to be rebooked. ^7[3A. A person resident outside ....