All
Authorized Dealers
In Foreign Exchange,
Dear
Sirs,
FORWARD
COVER
Attention
of the Authorized Dealers is invited to the provisions of
paragraphs 6
to 8
of Chapter
XX of the Foreign Exchange Manual (as amended from time
to time) regarding investment by non-residents in rupee
denominated securities including Government securities on
repatriation basis. Authorized Dealers are hereby permitted
to provide forward cover to the non-residents in respect
of repatriation of the maturity proceeds/dis-investment
proceeds of such investments made by them, in the manner
provided in paragraph
2 of Chapter
IV of the Foreign Exchange Manual as circulated vide
F.E. Circular No.33 of 1994
and amended from time to time.
2.
In order to enable the Authorized Dealers to provide this
additional facility, it has been decided to increase their
Nostro limits by 15 percent. The revised limits are being
communicated individually to each Authorized Dealers. It
has also been decided to increase the existing "open
position" limits of the Authorized Dealers from 10%
of their "Nostro" limits to 20%. The revised ‘Nostro’
and’ open position’ limits would become effective
on 1st October, 1997