Hedging of Foreign Exchange Risk - Final Directions - ಆರ್ಬಿಐ - Reserve Bank of India
Hedging of Foreign Exchange Risk - Final Directions
Draft regulations reviewing facilities for “Hedging of Foreign Exchange Risk by Residents and Non-Residents” were released for public comments in February 2019. As stated in the Statement on Developmental and Regulatory Policies dated December 5, 2019, based on the public comments received and the recommendations of the Task Force on Offshore Rupee Markets, the directions have now been finalised. Pursuant to the notification of the proposed changes to the Foreign Exchange Management Act (FEMA) Regulations in the Gazette of India, final directions are being issued today, which shall come into effect from June 1, 2020. The directions aim to ease access to the domestic foreign exchange derivative markets, inter alia, through:
The directions shall replace the existing directions in Part A - Section I and II of the Master Direction on Risk Management and Interbank Dealings. (Yogesh Dayal) Press Release: 2019-2020/2188 |