TaxTMI 
TaxTMI 
Booking of Forward Contracts
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....2 dated April 4, 2003. It has been decided to enlarge the scope of forward contracts to cover the following transactions. 1. Inflows under Foreign Direct Investment Forward contracts are currently not available for inflows on account of foreign investments into India. It has now been decided to permit residents outside India to enter into forward sale contracts with Authorised Dealers in India ....
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....lows residents in India to book forward contracts in respect of transactions for which sale and/or purchase of foreign exchange is permitted under the Act or rules or regulations, directions or orders made or issued there under. Hitherto, forward cover was not available in respect of transactions denominated in foreign currency but settled in Indian Rupees. It has now been decided to permit book....
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....alances held in Foreign Currency Non-Resident (FCNR) accounts. In order to facilitate better hedging opportunities to the holders of FCNR(B) deposits, it has now been decided to allow deposit holders to book cross currency (i.e. not involving the rupee) forward contracts to convert the balances in one foreign currency to another foreign currency in which FCNR(B) deposits are permitted to be maint....