The Reserve Bank today liberalised hedging limit for domestic investors to USD 250,000 from existing USD 100,000 on the basis of a simple declaration without any requirement of further documentation.
"... It has now been decided to allow all resident individuals, firms and companies, who have actual or anticipated foreign exchange exposures to book foreign exchange forward contracts up to USD 250,000 on the basis of a simple declaration without any requirement of further documentation," RBI said in a notification.
The existing facilities for small and medium enterprises (SMEs) having exposures to foreign exchange risk permitting them to book or roll over forward contracts without production of underlying documents to manage their exposures effectively subject to conditions specified therein shall remain unchanged, it said.
