RBI announces draft directions on facilities for hedging foreign exchange risk by Residents and Non-residents (Amended)

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....BI announces draft directions on facilities for hedging foreign exchange risk by Residents and Non-residents (Amended) <br>News and Press Release<br>Dated:- 16-2-2019<br><BR>The Reserve Bank of India today released a draft of the revised directions and regulations on facilities for hedging foreign exchange risk by Residents and Non-residents. Comments on the draft directions are invited from banks....

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...., market participants and other interested parties by March 15, 2019. Feedback on the draft directions may be forwarded to: The Chief General Manager, Reserve Bank of India Financial Markets Regulation Department 1st Floor, Main Building Shahid Bhagat Singh Marg Mumbai - 400001 Or by email with subject line "Feedback - facilities for hedging foreign exchange risk" Background A review of t....

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....he existing facilities for hedging of foreign exchange risk by non-residents and residents was announced in the Statement on Developmental and Regulatory Policies in February 2018 and August 2018 respectively. Post review, a draft of the revised directions is being put in the public domain for seeking comments. The draft directions propose to, inter alia: (i) Merge the facilities for residents a....

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....nd non-residents into a single unified facility for all users, (ii) Allow users having valid exposure to hedge the same using any available instrument, (iii) Introduce the facility to hedge anticipated exposure, (iv) Simplify the procedures for authorised dealers to offer foreign exchange derivatives. Once finalised, the directions shall replace the existing directions in Part A - Section I an....

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....d II of the Master Direction on Risk Management and Interbank Dealings. Ajit Prasad Assistant Adviser<BR> News - Press release - PIB....