Hedging Facility

LIC inks $1 billion in bond derivatives as hedging gains traction

LIC's FRA deals with Wall Street banks mark 38% of recent trades, as India's largest insurer adapts to market risk and rising bond demand amid equity losses

Irdai lets insurers to undertake transactions in bond forwards for hedging

Regulator Irdai on Monday permitted insurance companies to undertake transactions in bond forwards as users for hedging interest rate risks. The Reserve Bank has recently issued directions specifying that any entity, eligible to be classified as a non-retail user shall be eligible to undertake transactions in Forward Contracts in Government Securities (Bond Forwards) as a user. In a circular on 'Exposure to Forward Contracts in Government Securities (Bond Forwards)', Insurance Regulatory and Development Authority of India (Irdai) said that in view of the RBI's directions and considering insurers requests for introduction of Bond Forwards, "insurers are hereby permitted ...to undertake transactions in Bond Forwards as users for hedging purpose". The Irdai has also imposed certain conditions. Insurers should undertake only long positions in Bond Forwards (buying Bond Forwards) and report such transactions on quarterly basis. Also, Bond Forwards are not permitted for ULIP business, I

RBI's buy-sell swap strategy incentivising corporates to raise funds abroad

Firms may tap overseas mkt to raise funds

Sebi, NSE urge banks to source gold from exchange platform for hedging

The exchange will accept gold bars produced by the domestic refiners for settlement of the gold futures contracts traded on its platform

RBI proposes hedging for 'anticipated exposure' of foreign currency debt

An anticipated exposure is having an exchange rate on current and capital account transactions, which are expected to be entered into in the future

Hedging facility to be simpler from Jan 1, says RBI

The products covered will be any Over the Counter (OTC) derivative or Exchange Traded Currency Derivative (ETCD)