All
Authorized Dealers
In Foreign Exchange,
Dear
Sirs,
FORWARD
COVER
Please
refer to the instructions contained in para
4, of the revised
Chapter-IV of the Foreign Exchange Manual (7th
Edition, 1992) Circular No. F.E.
Circular No.33 dated the 28th March, 1994
in terms of which forward cover contracts against usance
import bills can be booked not later than 3 days of receipt
of the relevant bills by the Authorized Dealers. It has
now been decided to remove this restriction. Consequently,
Authorized Dealers can book forward overs against usance
import bills at any time before their maturity dates but
the maturity dates of the forward covers should not extend
beyond the maturity dates of the relative bills.
2.
Please bring the above to the notice of your constituents.
