NBFCs allowed to participate in currency futures to hedge their forex exposures

August 09, 2010: Reserve Bank had issued guidelines to banks on trading in currency futures in recognised stock/new exchanges on August 6, 2008.

Now RBI has decided that Non-Banking Financial Companies (NBFCs) may participate in the designated currency futures exchanges recognized by SEBI as clients, subject to RBI (Foreign Exchange Department) guidelines in the matter, only for the purpose of hedging their underlying forex exposures. Appropriate disclosures may be made regarding transactions undertaken in the Balance sheet.



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