75th Founding Day Lecture Meeting on “India@2030” Know More

July 2011

A.P. (DIR Series) Circular No. 60, dated 16-5-2011 — Comprehensive Guidelines on Over-the-Counter (OTC) Foreign Exchange Derivatives and Hedging of Commodity Price and Freight Risks.

By Gaurang Gandhi, Chartered Accountant
Reading Time 1 mins
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This Circular has changed the eligibility criteria for users of Over-the-Counter (OTC) cost reduction structures and option strategies.

Presently, listed companies or unlisted companies with a minimum net worth of Rs.100 crore, subject to certain conditions, are eligible to use OTC structures/strategies.

As per the new criteria, listed companies and their subsidiaries/JV/associates having common treasury and consolidated balance sheet or unlisted companies with a minimum net worth of Rs.200 crore, subject to certain conditions, are eligible to use OTC structures/strategies.

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