Regulation 6A - Freight hedge - Foreign Exchange Management (Foreign Exchange Derivative Contracts) Regulations, 2000

Freight hedge 6A. (i) Reserve Bank may, on an application made in accordance with such procedure as may be directed by Reserve Bank, permit a person resident in India, subject to such terms and conditions as may be considered necessary, to enter into a freight derivative contract in an exchange or a market out side India to hedge the freight risk such person is exposed to. (ii) Notwithstanding anything contained in sub-regulation (i) an authorised dealer in India 2 [ specially authorised in that behalf by the Reserve Bank ] may permit an oil refining company or a shipping company, resident in India, to enter into freight derivative contracts in an exchange or market outside India, to hedge the freight risk which the company is exposed to, subject to such terms and conditions as may be stipulated by the Reserve Bank from time to time: Provided that such authorised dealer category-I bank shall exercise the authority subject to directions and guidelines issued to them by the Reserve Bank in that behalf. *************** Notes: 1. 6A Inserted vide notification no. 191/2009 dated 20/5/2009 with effect from 4/2/2009 2. Substituted vide NOTIFICATION No. FEMA. 260/2013-RB dated 18/02/2013 w.e.f. 17/01/2012 . before it was read as, specially authorised by the Reserve Bank under sub-regulation (ii) of Regulation 6 .