CIR. NO.93/2002-03-RB, DT. 05/04/2003
- Document type
- Circular
- Reference no.
- C
- Dated
- Category
- A.P. (DIR Series) Circulars
Booking of Forward Contracts Based on Past Performance
Booking of Forward Contracts Based on Past Performance
2. In order to facilitate large corporates with proven track record and large import/export turnover to effectively and actively manage currency risks arising out of genuine exposures, Reserve Bank on application would consider permitting higher limits for booking forward contracts on the basis of past performance without submission of documentary evidence. Such forward contracts, booked under the enhanced limit, will be on a deliverable basis.
3. Corporates desirous of availing of higher limits may forward their applications, through an authorised dealer, to the Chief General Manager, Reserve Bank of India, Exchange Control Department, Forex Markets Division, Central Office, Mumbai-400 001 (Fax No. 22611427, e-mail ecdcofmd@rbi.org.in) justifying the need for the higher limits. Details of the import/export turnover of the past three years, delayed realisations/payments during these years and existing limits, duly authenticated by the authorised dealer, may also be furnished in the enclosed format.
4. Authorised dealers may bring the contents of this circular to the notice of their constituents concerned .
5. The directions contained in this circular have been issued under Section 10(4) and Section 11(1) of the Foreign Exchange Management Act, 1999 (42 of 1999).
Yours faithfully,
G.Padmanabhan
Chief General Manager
Name of the constituent : ____________________________________________
(Amount in USD million)
| Financial Year (April-March) | Turnover | Percentage of overdue bills to turnover | Existing limit for booking of forward cover based on past performance | |||
| Export | Import | Export | Import | Export | Import | |
| 2002-03 | ||||||
| 2001-02 | ||||||
| 2000-01 | ||||||