Booking of forward contracts based on past performance – April 30, 2003

Dear Members,

We append below a copy of RBI Circular No.AP(DIR) Circular No.93 dated April 5, 2003 received from Reserve Bank of India, Exchange Control Department, Mumbai on the above captioned subject.

This is for your information and reference. 

Thanking you,

Yours faithfully,
K Abdul Sattar Khan
Assistant Director 

RBI CIRCULAR AP (DIR) CIRCULAR NO.93 DATED 5TH APRIL 2003 

Attention of authorized dealers is invited to circular No. EC.CO.FMD/02.03/02.03.75/2001-02 dated December 1, 2001 and paragraph 3 of A.P. (DIR Series) Circular No.63 dated December 21, 2002, on the captioned subject. Authorized dealers are permitted to offer forward contracts to their importer/exporter constituents on the basis of last 3 years average import/export performance subject to condition that forward contracts outstanding at any point of time shall not exceed 25 percent of the eligible limit, within the cap of USD 100 million. 

2. In order to facilitate large corporate with proven track record and large import/ export turnover to effectively and actively manage currency risks arising out of genuine exposures, Reserve Bank on application would consider permitting higher limits for booking forward' contracts on the basis of past performance without submission of documentary evidence. Such forward contracts, booked under the enhanced limit, will be on a deliverable basis. 

3. Corporate desirous of availing of higher limits may forward their applications, through an authorized dealer, to the Chief General Manager, Reserve Bank of India, Exchange Control Department, For-ex Markets Division, Central Office, Mumbai-400 001 (Fax No. 22611427, e-mail ecdcofmd@bi.org.in) justifying the need for the higher limits. Details of the import/export turnover of the past three years, delayed realizations / payments during these years and existing limits, duly authenticated by the authorized dealer, may also be furnished in the enclosed format. 

4. Authorized dealers may bring the contents of this circular to the notice of their constituents concerned. 

5. The directions contained in this circular have been issued under Section 10(4) and Section 11(1) of the Foreign Exchange Management Act, 1999 (42 of 1999). 

Sd/-
(G. Padmanabhan) 
Chief General Manager 

Issued by: 
Reserve Bank of India 
Exchange Control Department 
Mumbai. 

Statement giving details of import / export turnover, overdues etc

Name of the Constituent: ____________________(Amount in USD million)