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TMI BlogBooking of Forward Contracts Based on Past PerformanceX X X X Extracts X X X X X X X X Extracts X X X X ..... exposure and based on past performance upto the average of the previous three financial years (April to March) actual import/export turnover or the previous year's actual import/export turnover, whichever is higher, subject to the specified conditions. Forward contracts booked in excess of 25 per cent of the eligible limit shall be on a deliverable basis and cannot be cancelled. The aggregate forward contracts booked during the year and outstanding at any point of time should not exceed the eligible limit. Further, the eligible limits are to be computed separately for import and export transactions. 2. As announced in the Mid-term Review of Annual Policy for the Year 2006-07 (para 105), with a view to providing greater flexibility to imp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... evious year's actual import/export turnover, whichever is higher. Contracts booked in excess of 25 per cent of the eligible limit will be on deliverable basis and cannot be cancelled. These limits shall be computed separately for import/export transactions. b) Any forward contract booked without producing documentary evidence will be marked off against this limit. c) Importers and exporters should furnish a declaration to the AD banks regarding amounts booked with other authorised dealers category-I under this facility. d) An undertaking may be taken from the customer to produce supporting documentary evidence before the maturity of the forward contract. e) Outstanding forward contracts higher than 50 per cent of the eligible li ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y 24, 2002 and subsequent amendments referred to in the following paragraphs. It has been decided to permit the following further relaxations: 3. Booking of forward contracts based on past performance In terms of our circular No. EC.CO.FMD/453/02.03.75/2001-02 dated December 1, 2001, Authorised dealers are permitted to offer forward contracts to their exporter/importer customers upto the limit/s worked out on the basis of last 3 years' average import/export performance. This is subject to the condition that at any point of time forward contracts so booked and outstanding shall not exceed 25 per cent of the eligible limit, within a cap of USD 50 million. It has been decided to enhance the cap to USD 100 million. Accordingly, Authoris ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... booked. Authorised dealers may continue to offer this facility without any restrictions in respect of export transactions. A.P.(DIR Series) Circular No.19 January 24, 2002 Risk Management and Inter-Bank Dealin gs Attention of authorised dealers is invited to the Reserve Bank Notification No. FEMA/25/2000-RB dated May 3, 2000. 2. Directions relating to forward exchange cover and other derivative products, Rupee Accounts of non-resident banks and inter-bank dealings, are contained in the enclosure. These directions supercede the existing instructions, namely, : i. Chapter 3 (Part C D and Annexure II) of ECM, ii. Chapter 5 (Part A B and Annexure) of ECM, iii. Instructions contained in A.D.(M.A. Series) Circular No.1 dated ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rd. A.3 A forward contract cancelled with one authorised dealer can be rebooked with another authorised dealer subject to the following conditions: a.the switch is warranted by competitive rates on offer, termination of banking relationship with the authorised dealer with whom the contract was originally booked, etc. b.the cancellation and rebooking are done simultaneously on the maturity date of the contract c.the responsibility of ensuring that the original contract which has been cancelled rests with the authorised dealer who undertakes rebooking of the contract. Contracts other than Forward contracts A.P.(DIR Series) Circular No.93 April 5, 2003 Booking of Forward Contracts Based on Past Performance Attention ..... X X X X Extracts X X X X X X X X Extracts X X X X
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