Booking of Forward Contracts Based on Past Performance- RBI instructions
As announced in the Annual Policy Statement for the year 2007-with a view to facilitate dynamic hedging of foreign exchange exposures of exporters and importers, RBI has decided to further liberalise the facility by raising the eligible limit of 50 per cent to 75 per cent. Accordingly, forward contracts booked on the basis of declaration of an exposure by importers / exporters and based on past performance in excess of 75 per cent of the eligible limit shall be on a deliverable basis and cannot be cancelled. All other conditions and reporting requirements prescribed for this facility will remain unchanged.
CIRCULAR NO. 52/RBI., Dated: May 8, 2007