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October 2012

A. P. (DIR Series) Circular No. 21 dated 31st August, 2012 Foreign investment by Qualified Foreign Investors (QFIs) – Hedging facilities

By Gaurang Gandhi, Chartered Accountant
Reading Time 1 mins
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This circular permits Qualified Foreign Investors (QFI) to hedge their currency risk for the following: –

 i) Entire investment in equity and/or debt in India as on a particular date through foreign currency – INR options.

ii) Initial Public Offers (IPO) related transient capital flows under the Application Supported by Blocked Amount (ASBA) mechanism through Foreign Currency – INR swaps.

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