Risk Management and Inter-bank Dealings: Operational flexibility for Indian subsidiaries of Non-resident Companies

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....ction 47 of FEMA, 1999 (Act 42 of 1999), as amended from time to time and Master Direction on Risk Management and Inter-Bank Dealings dated July 5, 2016, as amended from time to time. 2. With a view to providing operational flexibility to multinational entities and their Indian subsidiaries exposed to currency risk arising out of current account transactions emanating in India, the extant hedging guidelines have been amended as per the terms and conditions in the Annex I to this circular. An announcement to this effect was made in the Statement on Developmental and Regulatory Policies of Reserve Bank of India dated October 4th, 2016 (para. 9). 3. Necessary amendments (Notification No.FEMA No.384/2017-RB dated March 17, 2017) to Foreig....

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....eunder. 4. Operational Guidelines, Terms and Conditions for hedging i.  The transactions under this facility will be covered under a tri-partite agreement involving the Indian subsidiary, its non-resident parent / treasury and the AD bank. This agreement will include the exact relationship of the Indian subsidiary or entity with its overseas related entity, relative roles and responsibilities of the parties and the procedure for the transactions, including settlement. The ISDA agreement between the AD bank and the non-resident entity will be distinct from this agreement. ii.  The non-resident entity should be incorporated in a country that is member of the Financial Action Task Force (FATF) or member of a FATF....

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....CCIL's trade repository with a special identification tag. [Annex II to A.P. (DIR Series) Circular No. 41 dated March 21, 2017] RESERVE BANK OF INDIA (Financial Markets Regulatory Department) (CENTRAL OFFICE) NOTIFICATION No. FEMA. 384/RB-2017 Mumbai, the 17th March, 2017 Foreign Exchange Management (Foreign Exchange Derivative Contracts) (Amendment) Regulations, 2017 G.S.R. 260(E).-In exercise of the powers conferred by clause (h) of sub-section (2) of section 47 of the Foreign Exchange Management Act, 1999 (42 of 1999), the Reserve Bank hereby makes the following amendments in the Foreign Exchange Management (Foreign Exchange Derivative Contracts) Regulations, 2000 (Notification No. FEMA 25/RB-2000 dated May 3, 200....