Commodity Hedging by Entities in the Special Economic Zones

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....ial Economic Zones Attention of authorised dealers is invited to paragraph 6 of Notification No.FEMA25/RB-2000 dated 3rd May, 2000 and paragraph A.6(i) Part A of the enclosure to A.P. DIR(Series) Circular No.19 dated January 24, 2002. 2. The Notification referred to above has since been partially modified vide Notification No.FEMA-66/2002-RB dated 27th July 2002 (copy enclosed) and accordingly, ....

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....ular have been issued under Sections 10(4) and 11(1) of the Foreign Exchange Management Act, 1999 (42 of 1999). Yours faithfully, Grace Koshie Chief General Manager ANNEXURE [A.P.(DIR Series) Circular No.44 dated November 12, 2002] Guidelines/Terms & Conditions for undertaking hedging transactions * The focus will be on risk containment. Only off-set hedge will be permitted. * All stand....

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....oller should be verified by the bank to ensure that all off-shore positions are/were backed by physical exposures. These month-end reports may be kept on record for internal audit/inspection purpose. * The periodic statements submitted by Brokers, particularly those furnishing details of transactions booked and contracts closed out and the amount due/payable in settlement, should be checked by ....