By Nikita Chawla and Aashka Shah The Reserve Bank of India (“RBI”) on 12th March 2018, issued the Hedging of Commodity Price Risk and Freight Risk in Overseas Market (Reserve Bank) Directions, 2018 (“Commodity Hedging Directions”). These Commodity Hedging Directions revamp considerable portion of the present laws in relation to commodity derivative transactions being undertaken on a cross border basis. This also withdraws previous circulars issued by the regulator in relation to such commodity derivative transactions. Brief background The RBI has always followed a cautious approach in relation to commodity hedging. In 2003, RBI had permitted only those residents in […]
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