India may soon get a more liberalised FX derivatives
regulatory regime if Reserve Bank of India (RBI) adopts
recommendations by an internal advisory group.
The recommendations include allowing corporations to write
covered call and put options, and firms who derive FX exposures
arising from swaps between the rupee and foreign currencies may
be permitted to hedge the interest rate risk and cross currency
exposures. Banks would be given more flexibility in using
overseas currency/rupee swaps and may also be allowed to
approve commodity hedging proposals from their corporate
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