Thursday, December 15, 2016

Hedging mandatory for External Commercial Borrowings (ECBs)

In a bid to effectively address currency risk at the systemic level, the Reserve Bank of India on Monday said borrowers tapping External Commercial Borrowings (ECBs) will be required to cover the principal as well as the coupon through financial hedges. AD Category-I banks will have the responsibility of verifying that 100 per cent hedging requirement is complied with

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