TaxTMI 
TaxTMI 
Foreign investment by Qualified Foreign Investors (QFIs) – Hedging facilities
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....horized Dealers Category - I (AD Category - I) banks is invited to the Foreign Exchange Management (Foreign Exchange Derivative Contracts) Regulations, 2000 dated May 3, 2000 [Notification No. FEMA/25/RB-2000 dated May 3, 2000] and A.P. (DIR Series) Circular No.32 dated December 28, 2010, as amended from time to time. 2. In terms of A.P. (DIR Series) Circular No.8 dated August 9, 2011, A.P. (DI....
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....quity and debt instruments) in terms of the guidelines issued by the Reserve Bank from time to time. 3. It has now been decided to allow QFIs to hedge their currency risk on account of their permissible investments (in equity and debt instruments), as per the details given in the Annex. 4. Necessary amendments to the Notification No. FEMA.25/RB-2000 dated May 3, 2000 [Foreign Exchange Manage....
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.... Initial Public Offers (IPO) related transient capital flows under the Application Supported by Blocked Amount (ASBA) mechanism. Products Forward foreign exchange contracts with rupee as one of the currencies and foreign currency-INR options. Foreign Currency - INR swaps for IPO related flows. Operational Guidelines, Terms and Conditions QFIs are allowed to hedge the currency risk on a....
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....maturity, if so desired. The contracts, once cancelled cannot be rebooked. The forward contracts may, however, be rolled over on or before maturity. The cost of hedge should be met out of repatriable funds and /or inward remittance through normal banking channel. All outward remittances incidental to the hedge are net of applicable taxes. For IPO related transient capital flows QFIs....