Cos. to get RBI nod for hedging in crude, petro

By Our Special Correspondent

MUMBAI, SEPT. 3. The Government has now allowed corporates that have underlying exposures in crude oil and petroleum products to hedge the commodity price risks. The hedging facility would be available for both purchases and sales of crude oil as well as petroleum products. Corporates can access OTC hedging products in addition to exchange traded products.

Corporates desiring to avail of the facility of hedging their underlying exposures in crude oil and petroleum products may approach the Reserve Bank of India, Mumbai for one-time approval subject only to monthly reporting of transactions through the concerned authorised dealers, an RBI press release said. No approval is required for individual transactions.

Under the simplified procedure, the RBI,s decision would be given within three days.

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Section  : Business
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