Mumbai, April 7 (SocialNews.XYZ) The Reserve Bank on Tuesday issued final directions which aim to ease access to the domestic foreign exchange derivative markets for residents and non-residents from June 1 this year.
According to the RBI, pursuant to the notification of the proposed changes to the Foreign Exchange Management Act (FEMA) Regulations in the Gazette of India, "final directions are being issued today, which shall come into effect from June 1, 2020".
"The directions aim to ease access to the domestic foreign exchange derivative markets, inter alia, through merging facilities for residents and non-r esidents into a single unified facility for all users...," the RBI said in a statement.
"Allowing users having valid exposures to hedge the same by using any available instrument...."
Furthermore, the directions introduces facility to hedge anticipated exposures and simplifies procedures for authorised dealers to offer foreign exchange derivatives.
Earlier, the draft regulations reviewing facilities for "Hedging of Foreign Exchange Risk by Residents and Non-Residents" were released for public comments in February 2019.
The Statement on Developmental and Regulatory Policies came on December 5, 2019, based on the public comments received and the recommendations of the Task Force on offshore rupee markets.
Source: IANS
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