Simplified Hedging Facility to be effective from Jan 01, 2018
Published: Nov 10, 2017
By TIOLCORPLAWS News Service
MUMBAI, NOV 10, 2017: THE Reserve Bank of India (RBI) has introduced scheme of simplified hedging facility with a view to simplify the process for hedging exchange rate risk by reducing documentation requirements, avoiding prescriptive stipulations regarding products, purpose and hedging flexibility and to encourage a more dynamic and efficient hedging culture. The scheme was first announced by the RBI in August 2016 and the draft scheme was released on April 12, 2017. Necessary amendments in Foreign Exchange Management (Foreign Exchange Derivatives Contracts) Regulations, 2000 have been notified. Now RBI has introduced updated Master Direction on Risk Management & Interbank dealings. The guidelines of this facility will be effective from January 01, 2018.