Hedging exchange rate risk by FPIs under VRR Scheme

  Proposal revamping the Institutional Trading Platform Framework was notified by the RBI yesterday. RBI notably also notified the operational guidelines for hedging of exchange rate risk by FPI under the VRR  to permit FPIs to participate in currency and interest rate derivative instrument, OTC or exchange-traded, to hedge their interest rate or currency risk. Foreign Exchange Derivative Contracts…

Voluntary Retention Route for FPIs notified

In my earlier blog post, I discussed RBI’s Proposed Voluntary Retention Route, facilitating FPIs to undertake long-term investment in the Indian debt markets. RBI notified this proposal yesterday vide A.P. (DIR Series) Circular No. 21 titled ‘ Voluntary Retention Route’ (VRR) for Foreign Portfolio Investors. RBI has brought in this scheme by effecting amendments to…