MANU/RFEM/0017/2000
Department / Board :RBI-Exchange Control Department
Notification No :FEMA 25/2000
Date :
03.05.2000
Foreign Exchange Management (Foreign exchange derivative contracts )
Regulations, 2000.
In exercise of the powers conferred by clause (h) of sub-section (2) of
Section 47 of the Foreign Exchange Management Act, 1999 ( 42 of 1999), the
Reserve Bank makes the following regulations, to promote orderly development and
maintenance of foreign exchange market in India, namely:
1. Short title & commencement :-
(1) These Regulations may be called the Foreign Exchange Management (Foreign
exchange derivative contracts ) Regulations, 2000.
(2) They shall come in force on the 1st day of June,2000.
2. Definitions :-
In these Regulations, unless the context requires otherwise, -
(i) 'Act' means the Foreign Exchange Management Act,1999 (42 of 1999);
(ii) 'authorised dealer' means a person authorised as authorised dealer under
subsection (1) of section 10 of the Act;
(iii) 'Cash delivery ' means delivery of foreign exchange on the day of
transaction ;
(iv) 'Forward contract' means a transaction involving delivery, other than
Cash or Tom or Spot delivery, of foreign exchange;
(v) 'Foreign exchange derivative contract' means a financial transaction or
an arrangement in whatever form and by whatever name called, whose value is
derived from price movement in one or more underlying assets, and includes,
(a) a transaction which involves at least one foreign currency other than
currency of Nepal or Bhutan, or
(b) a transaction which involves at least one interest rate applicable to a
foreign currency not bei........