Risk Management and Inter-Bank Dealings
This Master Circular outlines the guidelines for risk management and inter-bank dealings in India.
Facilities for Persons Resident in India
Authorized dealers Category-I are allowed to offer various facilities to persons resident in India, including:
- 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.
Operational Guidelines and Terms and Conditions
The circular outlines the operational guidelines and terms and conditions for each of these facilities, including the roles of participants, market-makers, and users.
Purpose
The purpose of these facilities is to enable persons resident in India to manage their foreign exchange risk and engage in speculative activities.
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Download: Master Circular on Risk Management and Inter-Bank Dealings