**Summary:**
This circular, A.P. DIR Series Circular No. 16, issued by the Reserve Bank of India (RBI) on January 15, 2020, pertains to amendments regarding the hedging of commodity price risk and freight risk in overseas markets. It modifies Para 10 of the "Hedging of Commodity Price Risk and Freight Risk in Overseas Markets Reserve Bank Directions, 2018" issued on March 12, 2018, vide A.P. DIR Series Circular No. 19. The amendment mandates that banks submit a quarterly report to the Chief General Manager, Financial Markets Regulation Department (FMRD), RBI, through Extensible Business Reporting Language (XBRL) accessible at https:xbrl.rbi.org.inorfsxbrl, in the format provided in Annexure I. A 'Nil' report must be submitted even in the absence of transactions. These directions are issued under Sections 10(4) and 11(1) of the Foreign Exchange Management Act, 1999 (42 of 1999).
For further information, contact the Financial Markets Regulation Department, Central Office, 9th Floor, CO Building, Shahid Bhagat Singh Road, Fort, Mumbai – 400 001, India. Tel: 91-22-2260 1000, Fax: 91-22-22702290, Email: cgmfmrdrbi.org.in. The issuing officer is Saswat Mahapatra, Deputy General Manager, OiC.
Key Entities Referenced
Reserve Bank of India: The central bank of India, responsible for regulating the banking system and managing the country's currency.
Foreign Exchange Management Act, 1999: An act of the Parliament of India to consolidate and amend the law relating to foreign exchange with the objective of facilitating external trade and payments and for promoting the orderly development and maintenance of foreign exchange market in India.
Foreign Exchange Management Foreign Exchange Derivative Contracts Regulations, 2000: Regulations pertaining to foreign exchange derivative contracts, issued under the Foreign Exchange Management Act.
Hedging of Commodity Price Risk and Freight Risk in Overseas Markets Reserve Bank Directions, 2018: Directions issued by the Reserve Bank of India regarding the hedging of commodity price risk and freight risk in overseas markets.
Financial Markets Regulation Department: A department within the Reserve Bank of India responsible for regulating financial markets.
Extensible Business Reporting Language: A standardized, XML-based language for electronic communication of business and financial data.
Saswat Mahapatra: Deputy General Manager of Reserve Bank of India.
Mumbai, Maharashtra: City in India; location of the Central Office of the Financial Markets Regulation Department of the Reserve Bank of India.
भारतीय �रज़वर् ब�क
RESERVE BANK OF INDIA
www.rbi.org.in
RBI/2019-20/143
A.P. (DIR Series) Circular No. 16 January 15, 2020
All Authorised Dealer Category – I Banks
Madam / Sir,
Hedging of Commodity Price Risk and Freight Risk in Overseas Markets
(Reserve Bank) Directions, 2018 - Amendment
Please refer to Foreign Exchange Management (Foreign Exchange Derivative
Contracts) Regulations, 2000 (Notification No. FEMA 25/RB-2000 dated May 3, 2000),
as amended from time to time, and Hedging of Commodity Price Risk and Freight Risk
in Overseas Markets (Reserve Bank) Directions, 2018 (issued vide A.P. (DIR Series)
Circular No. 19 dated March 12, 2018).
2. Para 10 of the Directions ibid shall be substituted with following:
“10. Report to Reserve Bank - Banks shall submit a quarterly report to the
Chief General Manager, Financial Markets Regulation Department, Reserve
Bank of India through Extensible Business Reporting Language (XBRL)
accessible at https://xbrl.rbi.org.in/orfsxbrl/ in the format provided in Annexure
I. In case of no transactions, a “Nil” report shall be submitted by the bank.”
3. The directions contained in this circular have been issued under Sections 10(4)
and 11(1) of the Foreign Exchange Management Act, 1999 (42 of 1999) and are
without prejudice to permissions /approvals, if any, required under any other law.
Yours faithfully,
(Saswat Mahapatra)
Deputy General Manager (O-i-C)
िव�ीय बाज़ार िविनयमन िवभाग ,क�द्रीय काया�लय, 9वी ंमंिजल, क�द्रीय काया�लय भवन, शहीद भगत िसंह माग� ,फोट�, मुंबई 400 001, भारत
Financial Markets Regulation Department, Central Office, 9th Floor, CO Building, Shahid Bhagat Singh Road,
Fort, Mumbai – 400 001, India
फोन/Tel: (91-22) 2260 1000, फै�/Fax: (91-22) 22702290, ई-मेल /E-Mail: cgmfmrd@rbi.org.in
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