Risk Management and Inter-Bank Dealings - Commodity Hedging

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....rom time to time, A.P. (DIR Series) Circular No.03 dated July 23, 2005 and A.P. (DIR Series) Circular No.66 dated May 31, 2007 . Currently, residents in India are permitted to hedge their commodity price risk after obtaining specific approvals from the Reserve Bank or from select ADs which have been authorised by the Reserve Bank for the purpose. 2. In view of the volatility in global oil prices....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ng over-the-counter (OTC) / exchange traded derivatives overseas with the tenor restricted to a maximum of one-year forward. 4. AD Category - I banks should ensure that the entities hedging their exposures should have Board approved policies which define the overall framework within which derivatives activities should be undertaken and the risks contained. AD Category-I banks should approve this....