TMI BlogRisk Management and Inter-bank Dealings: Revised Guidelines relating to participation of Residents in the Exchange Traded Currency Derivatives (ETCD) marketX X X X Extracts X X X X X X X X Extracts X X X X ..... May 3, 2000 ), as amended from time to time and A.P. (DIR Series) Circular No. 147 dated June 20, 2014 relating to participation of residents in the ETCD market. Increase in position limits not requiring establishment of underlying exposure 2. Presently, domestic participants are allowed to take a long (bought) as well as short (sold) position upto USD 10 million per exchange. As a measure of further liberalisation, it has now been decided to increase the limit (long as well as short) in USD-INR pair upto USD 15 million per exchange. In addition, domestic participants shall be allowed to take long as well as short positions in EUR-INR, GBP-INR and JPY-INR pairs, all put together, upto USD 5 million equivalent per exchange. These l ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... other operational guidelines, terms and conditions including the requirement of certificate(s) from the Statutory Auditor regarding the eligible limit up to which domestic participants can take appropriate hedging positions in the ETCD market and the necessary undertaking from the CFO or senior most functionary responsible for company's finance and accounts as indicated in para (2)(b)(ii) of the above circular remain unchanged. 7. A matrix indicating the existing and the revised positions is enclosed for easy reference. 8. This circular has been issued under Sections 10 (4) and 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ar s turnover, in case they are importers. For participants who are exporters or importers of goods and services, the eligible limit up to which they can take appropriate hedging positions in ETCDs will be determined as higher of the (I) average of the last three years export or import turnover, or (II) previous year s export or import turnover (2) (b) (iii) Based on the above certificate, a trading member can book ETCD contracts upto fifty per cent of the eligible limit [as at paragraph (2)(b)(i)] on behalf of the concerned customer. If a participant wishes to take position beyond the fifty per cent of the eligible limit in the ETCD, it has to produce a certificate from the statuto ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e participant in the OTC and the ETCD markets put together did not exceed the actual exposure. All participants in the ETCD market, except those covered by paragraph (2)(b)(iv), will be required to submit to the concerned trading member of the exchange a half-yearly a signed undertaking from the Chief Financial Officer (CFO) or the senior most functionary responsible for company's finance and accounts and the Company Secretary (CS) as on March 31st and September 30th, within fifteen days from the said dates, to the effect that during the preceding six months, the derivative contracts entered into by the participant in the OTC and the ETCD markets put together did not exceed the actual exposure. In the absence of a CS, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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