Risk Management and Inter-Bank Dealings - Non-deliverable derivative contracts (NDDCs)

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....egulations, 2000 dated May 3, 2000 (Notification No. FEMA.25/RB-2000 dated May 3, 2000), as amended from time to time, and Master Direction - Risk Management and Inter-Bank Dealings dated July 5, 2016, as amended from time to time. 2. As per the extant regulatory framework, AD Cat-I banks operating International Financial Services Centre (IFSC) Banking Units (IBUs) are permitted to offer non-deliverable derivative contracts (NDDCs) to persons resident outside India. Such derivatives are cash-settled in foreign currency. With a view to developing the onshore INR NDDC market and providing residents the flexibility to efficiently design their hedging programmes, it has been decided to permit: (a) AD Cat-I banks operating IBUs to offer NDDCs ....

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....ealers shall offer derivative contracts to a user as per the user's classification in para (i) above. While offering a derivative contract involving INR, other than NDDCs, to a user, and during the life of such contracts, Authorised Dealers shall ensure that: Authorised Dealers shall offer derivative contracts to a user as per the users' classification in para (i) above. While offering a derivative contract involving INR to a user, other than NDDCs offered to persons resident outside India, and during the life of such contracts, Authorised Dealers shall ensure that: The existing para 2(A)(x) of Part-A (Section-I), shall be substituted iii. Banks in India having an Authorised Dealer Category-1 license under FEMA, 1999, and operating Inte....