New FX hedging rules tighten documentation for oil marketers

The RBI has introduced stricter documentation requirements for foreign exchange hedging by public‑sector oil marketers. Authorized dealers are now required to secure a written guarantee from any client entering a rupee‑linked FX derivative contract, confirming that the hedge is not duplicated with another dealer. This measure is intended to curb the misuse of hedging facilities and promote transparency in the foreign exchange market. Violations could lead to penalties and revocation of trading privileges.