Usha Thorat heads RBI task force on Offshore Rupee Markets
The RBI task force on Offshore Rupee Markets (ORM), headed by Usha Thorat, has suggested liberal currency market for offshore users. The panel recommended that onshore market hours may be suitably extended to match the flexibility provided by the offshore markets (or NDF markets). This is aimed at incentivizing non-residents to hedge in the onshore market. The Thorat panel suggested that banks may be allowed to freely offer prices to non-residents at all times, out of their Indian books, either by a domestic sales team, or by using staff located at overseas branches. It recommended that non-deliverable rupee derivatives (with settlement in foreign currency) may be allowed to be traded in the International Financial Services Centre (IFSC), and IFSC Banking Units may be allowed to deal in such derivatives with a distinct foreign currency-Indian rupee (INR) position limit.
Topics: Corporate tax avoidance • Currency • Currency symbols • Economy • Finance • Foreign exchange market • Indian rupee • International Financial Services Centre • Market risk • Rupee • Special economic zones • Tax avoidance