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February 2012

A.P. (DIR Series) Circular No. 68, dated 17-1-2012 —Risk Management and Inter-Bank Dealings — Commodity hedging.

By Gaurang Gandhi, Chartered Accountant
Reading Time 1 mins
This Circular permits all AD Category-I banks:

1.    To grant permission to listed companies to hedge the price risk in respect of any commodity (except gold, silver, platinum) in the international commodity exchanges/markets as specified under the delegated route.

2.    To grant permission to unlisted companies to hedge price risk on import/export in respect of any commodity (except gold, silver, platinum) in the international commodity exchanges/markets subject to guidelines Annexed to this Circular.

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