Risk Management and Inter-Bank Dealings
The Master Circular outlines the facilities and guidelines for persons resident in India, other than Authorized Dealers Category-I, for risk management and inter-bank dealings.
Facilities:
The circular covers four facilities:
- Forward Foreign Exchange Contracts: for hedging and speculative purposes, with operational guidelines and terms and conditions.
- Cross Currency Options (not involving Rupee): for hedging and speculative purposes, with operational guidelines and terms and conditions.
- Foreign Currency – INR Options: for hedging and speculative purposes, with operational guidelines and terms and conditions.
- Foreign Currency-INR Swaps: for hedging and speculative purposes, with operational guidelines and terms and conditions.
Participants and Market-makers:
The facilities are open to participants, including users, and market-makers, who are required to adhere to the operational guidelines and terms and conditions.
Purpose:
The facilities are intended for hedging and speculative purposes, with the aim of managing risk and promoting efficient inter-bank dealings.
Chat with the Master Circular:
Download: Master Circular on Risk Management and Inter-Bank Dealings