The Reserve Bank of India (RBI) is getting ready to issue new guidelines that would allow Indian exporters and importers to hedge their foreign exchange exposure by selling covered calls and puts; currently corporates are only allowed to buy options.
Fearful of the effect that a rise in US interest rates could have on those with heavy dollar exposures, the RBI has repeatedly urged Indian corporates to increase their forex hedging positions.
However, the signs are that many corporates have not
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