RBI announces Draft guidelines for Centralised Hedging for Indian Subsidiaries of Non-Resident Companies
The Reserve Bank of India today released draft operational guidelines to allow the overseas parent or its central treasury to hedge the currency risk arising out of genuine current account exposures of the Indian subsidiary in order to better manage the latter’s currency risk. Comments on the draft guidelines are invited from banks, market participants and other interested parties by November 11, 2016. Comments may be e-mailed or by post to the Chief General Manager, Reserve Bank of India, Financial Markets Regulation Department, Main Building, Mumbai 400 001. The announcement for this was made in the recent Statement on Developmental and Regulatory Policies dated October 4, 2016.
Ajit Prasad
Assistant Adviser
Press Release: 2016-2017/1116