RBI tightens forex derivative rules: What changes for hedging, cancelled trades
The RBI has tightened rules for rupee-linked foreign exchange derivatives, restricting the rebooking of cancelled contracts and cutting the threshold for transactions without establishing underlying exposure to $5 million from $100 million. It has also mandated additional checks for hedging activities and introduced a 20% cash reserve requirement for certain transactions.
Key Takeaways
- The RBI has tightened rules for rupee-linked foreign exchange derivatives, restricting the rebooking of cancelled contracts and cutting the threshold for transactions without establishing underlying exposure to $5 million from $100 million.
- It has also mandated additional checks for hedging activities and introduced a 20% cash reserve requirement for certain transactions.
- Full details and original dispatch available below.
The RBI has tightened rules for rupee-linked foreign exchange derivatives, restricting the rebooking of cancelled contracts and cutting the threshold for transactions without establishing underlying exposure to $5 million from $100 million. It has also mandated additional checks for hedging activities and introduced a 20% cash reserve requirement for certain transactions.
Original Publisher Attribution
This summary was curated from Economic Times.