TMI BlogBooking of Forward Contracts - LiberalisationX X X X Extracts X X X X X X X X Extracts X X X X ..... resident in India have been allowed to enter into forward contracts on the basis of underlying exposures. Further, exporters and importers have also been allowed to book forward contracts on the basis of declaration of exposures and based on past performances, subject to specified conditions. 2. As announced in the Annual Policy Statement for the Year 2007-08 (paras 142 and 143), with a view to provide greater flexibility to the Small and Medium Enterprises (SME) sector and resident individuals, it has been decided to further liberalise the scope and range of forward contracts to facilitate such entities to hedge their foreign currency exposures on a dynamic basis. Accordingly, a draft circular was placed on the website on June 1, 2007 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... racts to the SME customers as per Para 8.3 of 'Comprehensive Guidelines on Derivatives' issued vide DBOD.No.BP.BC. 86/21.04.157/2006-07 dated April 20, 2007. (iv) The SMEs availing this facility should furnish a declaration to the AD Category - I bank regarding the amounts of forward contracts already booked, if any, with other AD Category - I banks under this facility. 4. SMEs are also permitted to use foreign currency rupee options for hedging their exposures after production of underlying documents or under past performance route. Resident Individuals (para 143) 5. In order to enable resident individuals to manage / hedge their foreign exchange exposures arising out of actual or anticipated remittances, both inward and outward, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... irst week of January 2008. 8. Necessary amendments to Notification No. 25/2000-RB dated 3rd May 2000 [Foreign Exchange Management (Foreign Exchange Derivative Contracts) Regulations, 2000] are being issued separately. 9. AD Category - I banks may bring the contents of this circular to the notice of their constituents and customers concerned. 10. The directions contained in this circular have been issued under Section 10(4) and Section 11(1) of the Foreign Exchange Management Act, 1999 (42 of 1999) and is without prejudice to permissions/approvals, if any, required under any other law. Yours faithfully, (Salim Gangadharan) Chief General Manager Annex I [Annex to A. P. (DIR Series) Circular No. 15 dated ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... AML / KYC guidelines laid down by RBI and confirm having carried out requisite suitability and appropriateness test. Name and designation of the authorised official: Place: Signature: Date: Stamp and seal * month / year Annex II (A. P. (DIR Series) Circular No. 15 dated October 29, 2007) Statement - Details of Forward contracts booked and cancelled For the Quarter ended - (USD million) Category Forward Contracts Booked Forward Contracts Cancelled During the Quarter Cumulative total -Year to Date During the Quarter Cumulative total - Year to date SMEs Individuals Na ..... X X X X Extracts X X X X X X X X Extracts X X X X
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