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February 2011

Comprehensive Guidelines on Over-the-Counter (OTC) Foreign Exchange Derivatives and Overseas Hedging of Commodity Price and Freight Risks

By Pinky Shah, Sonalee Godbole, Gaurang Gandhi, Tarun Ghia, Brijesh Cholera, Pratik Mehta | Chartered Accountants
Sejal Vasa | Company Secretary
Reading Time 1 mins
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Part C : RBI/FEMA


Given below are the
highlights of certain RBI Circulars.

58 A.P. (DIR Series)
Circular No. 32,

dated 28-12-2010

Comprehensive Guidelines on
Over-the-Counter (OTC) Foreign Exchange Derivatives and Overseas Hedging of
Commodity Price and Freight Risks

 

Annexed to this Circular are
Comprehensive Guidelines on Foreign Exchange Derivatives and Overseas Hedging of
Commodity Price and Freight Risks. These guidelines will come into effect from
February 01, 2011. In addition, the Comprehensive Guidelines on Derivatives
issued vide Circular DBOD.No.BP.BC. 86/21.04.157/2006-07, dated April 20, 2007
and subsequent amendments thereto would continue to apply to foreign exchange
derivatives.

The guidelines are divided
into the following seven sections :


I. Section A — Overview
of the guidelines

II. Section B —
Guidelines for per sons resident in India
(other than AD Category I banks)

III. Section C—
Guidelines for persons resi dent outside India

IV. Section D—
Guidelines for Authorised Dealers Category I

V. Section E— Guidelines
for Commodity Derivatives

VI. Section F—
Guidelines for Freight Derivatives

VII. Section G— Reports
to the Reserve Bank



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