Reserve Bank of India allows resident entities to hedge gold price risk on recognised exchanges in IFSC

The Reserve Bank of India has decided to allow resident entities in the country to hedge their gold price risk on recognised exchanges in the International Financial Services Centre (IFSC).

This will help provide greater flexibility to resident entities in India to hedge the price risk of their gold exposures efficiently, RBI Governor and Monetary Policy Committee Chairman Shatikanta Das said while announcing the latest monetary policy decisions today.

Resident entities in India are currently not permitted to hedge their exposure to gold price risk in overseas markets.


The related instructions will be issued separately, the RBI said in its Statement on Developmental and Regulatory Policies.