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August 2016

A. P. (DIR Series) Circular No. 78 dated June 23, 2016

By Gaurang Gandhi, Chartered Accountant
Reading Time 1 mins
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Notification No. FEMA 365/2016-RB dated June 01, 2016

Permitting writing of options against contracted exposures by Indian Residents

This circular permits resident exporters and importers of goods and services to write (sell) standalone plain vanilla European call and put option contracts against their contracted exposure, i.e. covered call and covered put respectively, with any bank in India subject to operational guidelines, terms and conditions annexed in Annex I to this circular.

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