RBI issues guidelines for forex hedging by foreign companies
PrintListen to this Article
0:00
0:00
Reserve Bank of India (RBI) issued draft guidelines on how Indian subsidiaries of multinational companies can hedge their currency exposure risk in the country.
RBI said on Friday that subsidiaries looking to hedge their exposure outside of exports and imports could do so through all foreign currency-rupee derivatives, over-the-counter, and exchange-traded products.
It also said profits and losses arising from hedging transactions in India must be reflected in the books of the domestic subsidiaries of multinational companies, among other guidelines.
Previously, multinational companies could only hedge currency risk arising out of transactions involving imports and exports.
The RBI had said last month that it would widen the scope of activities where hedging was allowed.
Market participants and banks can submit their comments about the proposed guidelines by Nov. 11, the RBI said. (Source - Reuters)
RBI said on Friday that subsidiaries looking to hedge their exposure outside of exports and imports could do so through all foreign currency-rupee derivatives, over-the-counter, and exchange-traded products.
It also said profits and losses arising from hedging transactions in India must be reflected in the books of the domestic subsidiaries of multinational companies, among other guidelines.
Previously, multinational companies could only hedge currency risk arising out of transactions involving imports and exports.
The RBI had said last month that it would widen the scope of activities where hedging was allowed.
Market participants and banks can submit their comments about the proposed guidelines by Nov. 11, the RBI said. (Source - Reuters)
Category : RBI | Comments : 0 | Hits : 347
The Supreme Court on Friday set aside the rejection of an IRS officer’s candidature for appointment as a member of the Income Tax Appellate Tribunal (ITAT), ruling that the involvement of the th...
The Reserve Bank of India (RBI) on Friday unveiled a set of liquidity-boosting measures aimed at infusing more than $23 billion (around ₹2 lakh crore) into the banking system, after review...
RBI has issued draft rules to tighten dividend payouts by banks by linking distributions to capital adequacy, asset and profit quality, setting a uniform prudential framework effective from FY27. In t...
Comments