Participation in Currency Options
RBI/2010-11/205
DNBS (PD) CC No. 199 / 03.10.001/ 2010-11
September 16, 2010
To,
All non-deposit taking NBFCs with asset size of Rs. 100 crore and above (NBFCs-ND-SI)
Dear Sirs,
Participation in Currency Options
Reserve Bank had issued guidelines to banks on trading in currency options in recognised stock/new exchanges on July 30, 2010.
2. Accordingly, it has been decided that NBFCs may participate in the designated currency options exchanges recognized by SEBI as clients, subject to RBI (Foreign Exchange Department) guidelines in the matter, only for the purpose of hedging their underlying forex exposures. Appropriate disclosures may be made regarding transactions undertaken in the Balance sheet.
Yours faithfully,
(Uma Subramaniam)
Chief General Manager-in-Charge
CAclubindia
