Risk Management and Inter Bank Dealings: Hedging under Past Performance Route- Liberalisation of Documentation Requirements in the OTC market

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....) as amended from time to time and A.P. (DIR Series) circular no. 32 dated December 28, 2010, as amended from time to time. 2. In order to further rationalise the documentation process for exporters and importers relating to hedging of probable exposures based on past performance, the extant guidelines in this regard have been revised as follows: a) In terms of paragraph (2)(g)(ii) of section B contained in the annex to the above circular, importers and exporters are required to furnish a quarterly declaration, as per Appendix M, duly certified by the Statutory Auditor, to the AD Category I banks regarding amounts booked with other AD Category I banks under this facility. It has now been decided that importers and exporters shall, hen....

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.... the COO shall co-sign the undertaking along with the CFO. c) As part of the annual audit exercise, the Statutory Auditor shall also certify the following: • The amounts booked with AD Category-I banks under this facility; and • All guidelines have been adhered to while utilizing this facility over the past financial year. 3. All other operational guidelines, terms and conditions shall remain unchanged. 4. AD Category-I banks may bring the contents of this circular to the notice of their constituents and customers. 5. The directions contained in this circular have been issued under Sections 10(4) and 11(1) of the Foreign Exchange Management Act, 1999 (42 of 1999) and are without prejudice to permissions....

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....ments) as on date Available limits under past performance as on date   Thanking you, Yours faithfully, For XXXXXX (Chief Financial Officer)                          (Company Secretary) Annex II Format for Declaration for utilisation of past performance limits in excess of 50 per cent and details of import / export turnover, overdues, etc. [On letterhead of the Company] Date: To, (Name and address of the Bank) Dear Sir, Sub: Declaration for utilisation of past performance limits in excess of 50 per cent and details of import / export turnover, overdues, etc. â....