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........