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

December 2012

A. P. (DIR Series) Circular No. 45 dated 22nd October, 2012

By Gaurang Gandhi, Chartered Accountant
Reading Time 1 mins
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Facilities for Persons Resident outside India – FIIs

Presently, FII are permitted to hedge the currency risk on the market value of their entire investment in equity and / or debt in India, as on a particular date, only with designated bank branches.

This circular permits FII to hedge the currency risk on the market value of their entire investment in equity and / or debt in India, as on a particular date, with any bank, subject to certain conditions. However, when the FII undertakes hedge with a non-designated bank branch, the same has to be settled through the Special Non-Resident Rupee A/c maintained with the designated bank through RTGS / NEFT.

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A. P. (DIR Series) Circular No. 46 dated 23rd October, 2012