Resident entities from India will now be permitted to hedge gold price risks at the International Financial Services Centre, RBI Governor Shaktikanta Das said on Wednesday.
At present, resident entities in India are not permitted to hedge their exposure to gold price risk in overseas
markets.
“With a view to providing greater flexibility to these entities to hedge the price risk of their gold exposures efficiently, it has been decided to permit resident entities to hedge their gold price risk on recognised exchanges in the IFSC,” Das said after announcing the bi-monthly policy review.
The detailed instructions on the same will be issued separately by the central bank, he added.
Meanwhile, Das also announced to extend the dispensation of enhanced HTM (held to maturity) limit of 23 per cent up to March 31, 2024, and allow banks to include securities acquired between September 1, 2020, and March 31, 2024, in the enhanced HTM limit.