HSBC India said on Wednesday it executed its first non-deliverable forex derivative transaction with Reliance Industries, a day after the Reserve Bank of India allowed such transactions for resident Indians. The RBI on Tuesday issued guidelines for non-deliverable forward (NDF) contracts that can be issued to non-retail participants for hedging and are settled in the Indian rupee.
The RBI‘s decision to allow banks to offer non-deliverable foreign exchange derivative contracts involving Indian rupee to resident entities is expected to align the rupee hedging curves in onshore and offshore markets, the bank said in a press release.