Forward contract booking limit

Forward contracts are 'buy now, pay later' products, which enable you to essentially 'fix' an exchange rate at a set date in the future (often 12 – 24 months   Booking of Forward Exchange Contracts and Exchange Control Regulations Forward exchange contract is a device which can afford adequate protection to an importer or an exporter against exchange risk. Under a forward exchange contract a banker and a customer or another banker enter into a contract to buy or sell a fixed amount of foreign currency on a specified future date as a predetermined rate of exchange. It thus enters into a forward contract with its financial institution to sell two million bushels of corn at a price of $4.30 per bushel in six months, with settlement on a cash basis.

The current rate (spot rate) for exchange is $1 = INR 66.45. M/s A & Co. enters into an agreement with banker to realize the proceeds after 3 months at the rate of 66.67 per dollar. Agreed rate of $1=INR 66.67 shall be the forward rate for the particular transaction, and the entire transaction is a “Forward Contract”. PRINCIPAL TERMS AND CONDITIONS FOR FORWARD TRANSACTIONS Last updated date: June 22, 2017 contract or at the time of utilization/gross settlement of the contract. (f) Contracts booked on past performance basis up to 75 percent of the eligible limit Exporters/Importers- Booking of 1 month forward for a fixed date of delivery / Booking Of Forward Contracts On Past Performance Basis; Concepts & Definitions Used While Filling-In The Annual Return On Foreign Liabilities & Assets; Cross-Currency Derivative Transactions-Statement For Half-Year; Currency Declaration Form (CDF) ECB - 2 -Reporting Of Actual Transactions Of ECB; Exchange Control Declaration (GR)-Original/ Duplicate 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. Thus, if the spot price of pounds per dollar were 1.5459 and there were a premium of 15 points for a forward contract with a 360-day maturity, the forward rate (not including a transaction fee) would be 1.5474. Prescribed ceiling of USD1,000,000/- is a composite limit for booking of forward contracts and FCY-INR Option. Advantage of Special Dispensation Firms and companies can book forward contracts up to a limit of USD1,000,000/- without production of underlying documents at the time of booking.

REQUEST LETTER FOR BOOKING FORWARD CONTRACT To The Branch Manager, Yes Bank Ltd., ----- Branch Dear Sir, Reg. Request to book forward exchange contract for _____ Please book / cancel forward exchange contract covering for our following transactions : Sale / Purchase Currency & Amount Underlying

28 Dec 2010 without production of underlying documents, up to a limit of USD available to forward contracts booked on past performance basis without. 8 Jan 2012 Forward contracts booked by residents irrespective of the type and tenor facility stands reduced to 25 percent of the limit as computed above,  3 Outright Forward Contract Contract Period 1 Year Contract Period 1 Year t=0 t= 1 Date of Booking Maturity Date or Expiry Date Settlement is allowed only at t=1 ( that means on particular Maximum option period as per FEDAI is One month. Forward contracts are 'buy now, pay later' products, which enable you to essentially 'fix' an exchange rate at a set date in the future (often 12 – 24 months   Booking of Forward Exchange Contracts and Exchange Control Regulations Forward exchange contract is a device which can afford adequate protection to an importer or an exporter against exchange risk. Under a forward exchange contract a banker and a customer or another banker enter into a contract to buy or sell a fixed amount of foreign currency on a specified future date as a predetermined rate of exchange.

The aggregate forward contracts booked during the year and outstanding at any point of time should not exceed the eligible limit. The eligible limits are to be 

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. a) The forward contracts booked in the aggregate during the year and outstanding at any point of time should not exceed the eligible limit i.e. 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. Contracts booked in excess of 75 per cent of the eligible limit will be on deliverable basis and cannot be cancelled. These limits shall be computed separately for import Name of the bank - (in USD) Total Limits sanctioned during the month Cumulative sanctioned limits Amt of contracts booked Amount utilized (by delivery of documents) Amount of forward contracts cancelled Notes: 1. The position of the bank as a whole shall be indicated. 2. Amounts in columns 2, 3, 4 and 5 should be cumulative positions over the year. The current rate (spot rate) for exchange is $1 = INR 66.45. M/s A & Co. enters into an agreement with banker to realize the proceeds after 3 months at the rate of 66.67 per dollar. Agreed rate of $1=INR 66.67 shall be the forward rate for the particular transaction, and the entire transaction is a “Forward Contract”. PRINCIPAL TERMS AND CONDITIONS FOR FORWARD TRANSACTIONS Last updated date: June 22, 2017 contract or at the time of utilization/gross settlement of the contract. (f) Contracts booked on past performance basis up to 75 percent of the eligible limit Exporters/Importers- Booking of 1 month forward for a fixed date of delivery / Booking Of Forward Contracts On Past Performance Basis; Concepts & Definitions Used While Filling-In The Annual Return On Foreign Liabilities & Assets; Cross-Currency Derivative Transactions-Statement For Half-Year; Currency Declaration Form (CDF) ECB - 2 -Reporting Of Actual Transactions Of ECB; Exchange Control Declaration (GR)-Original/ Duplicate

22 Jun 2017 Contracts booked on past performance basis in excess of 75 percent of the eligible limit shall be on a deliverable basis and cannot be cancelled.

of any forward contract cannot take place within one month of its booking. In case payment has to be made against letter of credit within one month of the forward contract, the prevailing spot selling rate will be applied and the relevant forward contract will be closed out at the end of one month from the booking date. Forward booking may be REQUEST LETTER FOR BOOKING FORWARD CONTRACT To The Branch Manager, Yes Bank Ltd., ----- Branch Dear Sir, Reg. Request to book forward exchange contract for _____ Please book / cancel forward exchange contract covering for our following transactions : Sale / Purchase Currency & Amount Underlying 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. a) The forward contracts booked in the aggregate during the year and outstanding at any point of time should not exceed the eligible limit i.e. 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. Contracts booked in excess of 75 per cent of the eligible limit will be on deliverable basis and cannot be cancelled. These limits shall be computed separately for import Name of the bank - (in USD) Total Limits sanctioned during the month Cumulative sanctioned limits Amt of contracts booked Amount utilized (by delivery of documents) Amount of forward contracts cancelled Notes: 1. The position of the bank as a whole shall be indicated. 2. Amounts in columns 2, 3, 4 and 5 should be cumulative positions over the year. The current rate (spot rate) for exchange is $1 = INR 66.45. M/s A & Co. enters into an agreement with banker to realize the proceeds after 3 months at the rate of 66.67 per dollar. Agreed rate of $1=INR 66.67 shall be the forward rate for the particular transaction, and the entire transaction is a “Forward Contract”. PRINCIPAL TERMS AND CONDITIONS FOR FORWARD TRANSACTIONS Last updated date: June 22, 2017 contract or at the time of utilization/gross settlement of the contract. (f) Contracts booked on past performance basis up to 75 percent of the eligible limit Exporters/Importers- Booking of 1 month forward for a fixed date of delivery /

11 Sep 2019 Forward booking is the process of entering into a contract with a booking company, or risk agent, to lock in a specific price for a future date.

Forward contracts can help protect you against market volatility. You can Limit order. A limit order specifies an exchange rate that you would like to achieve. Option forward contracts give the client an option to carry out the conversion at the Booking Limit includes contracts booked during a year as well as contracts   28 Mar 2018 We cover the concepts behind Credit Exposure Limit (CEL), Contracted All forward contracts booked to cover foreign exchange exposures  28 Dec 2010 without production of underlying documents, up to a limit of USD available to forward contracts booked on past performance basis without.

Limits will be fixed up to 100% of the average of previous three financial years' (April to March) import turnover or the previous years' actual turnover, whichever is higher. Further, forward contracts booked under this facility will be fully deliverable and no cancellation will be allowed. Annex IX (See paragraph A 2 (g) of the Master Circular on Risk Management and Inter-bank Dealings dated July 2, 2007) Booking of forward contracts on past performance basis- Loan Equivalent Risk (LER) limit is sanctioned to Corporates for potential fluctuation in the contractual currency of a foreign exchange transaction (forward / option) undertaken over the transaction's stipulated time period, as determined using the historical volatility of the contractual currency. Forward Exchange / option contracts can be used to cover exchange risk between an overseas currency and local currency or between two overseas currencies. The contract may be entered into at any