Several exporters said banks have exposed their clients to risky foreign exchange derivative deals.
The key accusation is over-exposure to the foreign exchange market leading to speculative positions even though the primary objective of the derivative contracts should have been to cover the risk from exchange rate fluctuations.
"In many cases, the cumulative value of contracts exporters have entered into are several times more the turnover of the exporters," said a source close to the development.
Initial estimates suggest Tirupur exporters alone have lost Rs 300-600 crore on account of their forex derivatives deals.
There have also been instances of
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