TMI BlogForeign Exchange Management (Foreign Exchange Derivative Contracts) (First Amendment) Regulations, 2020X X X X Extracts X X X X X X X X Extracts X X X X ..... gement (Foreign Exchange Derivative Contracts) Regulations, 2000 ( Notification No. FEMA 25/RB-2000 dated May 3, 2000 ), namely: 1. Short title commencement i. These Regulations may be called the Foreign Exchange Management (Foreign Exchange Derivative Contracts) (First Amendment) Regulations, 2020. ii. These regulations shall come into force from the date of their publication in the Official Gazette. 2. Amendments i. In para 2 (Definitions) of the Foreign Exchange Management (Foreign Exchange Derivative Contracts) Regulations, 2000 ( Notification No. FEMA 25/RB-2000 dated May 3, 2000 ) the text of the definition of authorised dealer at sub para (ii) shall be substituted by the following: 'authorised deale ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r any rules or regulations made thereunder, that are proposed to be entered into in future. (xiv) Currency risk means the potential for loss on account of movement in exchange rates of Rupee against a foreign currency or on account of movement in exchange rates of one foreign currency against another or on account of movement of interest rate applicable to a foreign currency. (xv) Hedging means the activity of undertaking a foreign exchange derivative transaction to manage currency risk. (xvi) Exchange traded currency derivatives means a standardised foreign exchange derivative contract traded on a recognized stock exchange to buy or sell one currency against another on a specified future date, at a price specified on the dat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... med as Permissible foreign exchange derivative contract ix. The existing text under Schedule I of the Foreign Exchange Management (Foreign Exchange Derivative Contracts) Regulations, 2000 ( Notification No. FEMA 25/RB-2000 dated May 3, 2000 ) shall be substituted by the following: 1. A person, whether resident in India or resident outside India, may enter into a foreign exchange derivative contract with an authorised dealer. Contracts involving Rupee subject to the following condition(s): i. that such contracts shall be for the purpose of hedging a contracted or anticipated exposure Provided that contracts not based on a contracted or anticipated exposure may be undertaken, as may be permitted by the Reserve Bank of India ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Footnote- The principal regulations were published in the Gazette of Government of India-Extraordinary-Part-II, Section 3, Sub-Section (i) vide G.S.R. 411(E) dated May 8, 2000 and subsequently amended vide G.S.R. 756(E) dated 28.09.2000, G.S.R. 264(E) dated 09.04.2002, G.S.R. 579(E) dated 19.08.2002, G.S.R. 222(E) dated 18.03.2003, G.S.R. 532(E) dated 09.07.2003, G.S.R. 880(E) dated 11.11.2003, G.S.R. 881(E) dated 11.11.2003, G.S.R. 750(E) dated. 28.12.2005, G.S.R. 222(E) dated 19.04.2006, G.S.R. 223(E) dated 19.04.2006, G.S.R. 760(E) dated 07.12.2007, G.S.R. 577(E) dated 05.08.2008, G.S.R. 440(E) dated 23.06.2009, G.S.R. 895(E) dated 14.12.2009, G.S.R. 635(E) dated 27.07.2010, G.S.R. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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