Hedging
of Commodity Price Exposure on International Commodity Exchanges
As
authorised dealers are aware, Reserve Bank had constituted a Committee
on Hedging through International Commodity Exchanges under the Chairmanship
of the then Deputy Governor, Shri R.V. Gupta. The recommendations of the
Committee have been examined in consultation with the Government of India
and it has been decided to allow Indian entities having genuine underlying
exposure to access International
Commodity
Exchanges for Exchange Traded futures contracts/options (purchases only) |
 |
for
hedging commodity price exposures. The facility of hedging will, however,
not be available for oil and petroleum products. Accordingly, Indian corporates
desirous of availing of this facility may submit their applications to
the Chief General Manager, Exchange Control Department, Reserve Bank of
India, Central Office, Mumbai-400 001 through an authorised dealer for
permission for hedging of their commodity price exposures on off-shore
Commodity Exchanges, giving information/documents. |
