Skip to main content

RBI Updates Hedging Rules: Permits Non-Deliverable Derivatives and Rebooking of Cancelled Contracts

The Reserve Bank of India has issued a new circular (RBI/2026-27/14, dated April 20, 2026), superseding its earlier directive of April 1, 2026. The previous communication stands withdrawn with immediate effect.

Under the revised guidelines, customers are now permitted to:

  1. Enter into non-deliverable derivative contracts involving the Indian Rupee (INR), and

  2. Rebook any cancelled deliverable or non-deliverable derivative contracts involving INR, subject to prevailing regulatory hedging requirements.

Importantly, all prior regulatory frameworks issued before April 1, 2026—including the Master Direction on Risk Management and Inter-Bank Dealings dated July 5, 2016, as amended—continue to remain in full force. Stakeholders are advised to refer to the updated circular for compliance

Comments

Post a Comment

Popular posts from this blog

Shift from Defensive to Accumulation

  Executive Summary:  The data clearly supports  moving from a ‘conservative’ to a ‘moderately aggressive’ stance . While the absolute bottom may not be in, the risk-reward ratio has turned favorably for long-term, disciplined investors. The combination of fair valuations, extreme pessimism (VIX), and robust structural flows (DIIs/SIPs) creates a classic "wall of worry" setup.
Post a Comment
Read more

SEBI Update | LODR (Fifth Amendment) Regulations, 2025

  The Securities and Exchange Board of India (“SEBI”) had at its Board meeting held on 12 September 2025, approved certain changes, inter-alia to the Related Party Transactions (“RPTs”) framework under the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (“LODR”). These changes have now been notified on 19 November 2025 vide the SEBI LODR (Fifth Amendment) Regulations, 2025.
Post a Comment
Read more

PCR Matrix of Mutual Funds: An Overview

The PCR (Portfolio Concentration Risk) matrix is a tool used to evaluate the diversification and concentration risk within a mutual fund's portfolio. It helps investors and fund managers understand how concentrated a portfolio is in specific assets, sectors, or asset classes, which in turn influences the risk profile of the fund. Here's a detailed explanation of the PCR matrix and its significance in mutual fund analysis.
Post a Comment
Read more