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RBI CIRCULAR
without prejudice to permissions/ approvals, if any, banks is invited to Foreign Exchange Management
required under any other law. (Foreign Exchange Derivative Contracts) Regulations,
2000 dated May 3, 2000 (Notification No. FEMA/25/RB-
Yours faithfully, 2000 dated May 3, 2000) as amended from time to time
(A. K. Pandey) and A.P. (DIR Series) circular no. 32 dated December
Chief General Manager 28, 2010 - Comprehensive Guidelines on Over the
Counter (OTC) Foreign Exchange Derivatives and
Format of Statutory Auditors' Certificate Overseas Hedging of Commodity Price and Freight
(SAC) to be submitted by NBFCs Risks, as amended from time to time. Attention is also
invited to Reserve Bank circular No. DBOD.No.BP.BC.
RBI/2015-16/433 86/ 21.04.157/ 2006-07 dated April 20, 2007 on
Comprehensive Guidelines on Derivatives as well as the
DNBS (PPD) CC.No./04/66.14.001/2015-16 modifications issued through circular No.
DBOD.No.BP.BC. 44/21.04.157/2011-12 dated
CEOs of All NBFCs (excluding RNBCs) and The President of November 2, 2011.
ICAI
2. As announced in the Bi-Monthly Monetary Policy
Dear Sir/Madam, Statement on April 7, 2015, in order to encourage
1. Please refer to the Notification No. DNBS 192/DG (VL) participation in the Over the Counter (OTC) currency
options market and improve its liquidity, it has been
dated Feb 22, 2007 prescribing Prudential Norms decided to permit resident exporters and importers of
Directions. In terms of the extant instructions, all NBFCs goods and services to write (sell) standalone plain
are required to submit a certificate from their Statutory vanilla European call and put option contracts against
Auditors every year to the effect that they continue to their contracted exposure, i.e. covered call and covered
engage in the business of NBFI requiring it to hold a put respectively, to any AD Cat-I bank in India subject
CoR under Section 45-IA of the RBI Act. to operational guidelines, terms and conditions given
in Annex I to this circular.
2. With a view to ensure consistency in the manner in
which the information is received from the Auditors, it 3. Necessary amendments (Notification No. FEMA 365/
has been decided to introduce a uniform format of the 2016-RB dated June 1, 2016) to Foreign Exchange
SAC. The NBFC would need to fill in the information, as Management (Foreign Exchange Derivatives Contracts)
applicable, in COSMOS. Thereafter, the SAC needs to Regulations, 2000 (Notification No. FEMA.25/RB-2000
be scanned and uploaded in COSMOS https:// dated May 3, 2000) (Regulations) have been notified
cosmos.rbi.org.in under the menu Upload Returns > in the Official Gazette vide G.S.R. No. 571 (E) dated
Statutory Auditors Certificate. The format of the SAC June 1st, 2016, a copy of which is enclosed (Annex II).
is attached herewith.
4. AD Cat-I banks may bring the contents of this circular
Yours faithfully to the notice of their constituents and customers.
(Dr. Sathyan David)
Chief General Manager 5. The directions contained in this circular have been
issued under Sections 10(4) and 11(1) of the Foreign
Permitting writing of options against Exchange Management Act, 1999 (42 of 1999) and are
contracted exposures by Indian without prejudice to permissions/ approvals, if any,
Residents required under any other law.
RBI/2015-16/431 6. These guidelines will be reviewed after one year based
on experience.
A.P. (DIR Series) Circular No. 78
Yours faithfully
All Category - I Authorised Dealer Banks (R Subramanian)
Chief General Manager
Madam / Sir,
1. Attention of Authorised Dealer Category - I (AD Cat - I)
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