Hedging of Overseas Direct Investments By Residents - Liberalisation

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Full Text of the Document

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....which resident entities having overseas direct investments (in equity and loan) are permitted to hedge the exchange risk arising out of such investments by entering into forward / option contracts with AD Category - I banks, subject to verification of such exposure. Such contracts must be completed by delivery or rolled over on the due date and not cancelled. 2. As announced in the Annual Policy....