Foreign Exchange Market
(1) The external commercial borrowings (ECBs) policy modified - ECBs up to US$ 500 million per borrower per financial year permitted for rupee expenditure and/or foreign currency expenditure for permissible end-uses under the automatic route; payment for obtaining license/permit for 3G Spectrum allowed to be considered an eligible end-use for the purpose of ECBs; ECBs borrowers permitted to either keep proceeds off-shore or to remit to India for credit to their rupee accounts with AD Category-I banks in India, pending utilisation for permissible end-uses.
(2) All-in-cost ceilings for ECBs for average maturity period of three years and up to five years enhanced to 300 basis points and over five years enhanced to 500 basis points above LIBOR.
(3) The exchange traded currency futures started trading on the National Stock Exchange (August 29, 2008), the Bombay Stock Exchange (October 1, 2008) and the Multi Commodity Exchange – Stock Exchange (October 7, 2008).
(4) CCIL to operationalise settlement system of the foreign exchange forward segment within a month.
(5) Domestic oil and shipping companies permitted to hedge their freight risk with overseas exchanges/ OTC markets.
Image: A money changer holds a wad of US dollar bills. | Photograph: Tengku Bahar/AFP/Getty Images
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