Overview Forex One Session -Vrd-feb15

8/18/2019 Overview Forex One Session -Vrd-feb15

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Academy of Excellence Inventing Methods for Igniting Minds

Academy of Excellence Inventing Methods for Igniting Minds April 27, 2016 TC Baroda 1

Forex Overview

By

Baroda Apex AcademyAhmedabad


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Learning Objectives

To get acquainted with :1. Regulator

!. "i##erent Rate and it ue

$. "i##erent "eal % Forward &ontract'. Authori(ed )eron

*. F+"A, - / Rule

0. F+A guideline

a. Remittance by Reident ,ndian % 2R3

b. Reident 4 5on Reident &urrency 2imit


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Regulation % Regulator

Government’s Policies & GidelinesMin of !inance Min of "ommerce

#$I% !EMA% !EAI% !'P% G!'% EP"

"stoms% Excise% "stoms% ExciseExim $an(

$an(’s O)n Gidelines

Lending Policy% Processing% #is( ManagementOther Agencies

E"G" * Garantee to $an(+Ex,orters


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Factor determining +xchange Rate

Demand / Supply situation in Forex Maret Balan!e o" #ayment – Generally sr,ls leads to a stronger

crrency% )hile a deficit )ea(ens a crrency

+conomic – A high Inflation rate leads to a fall in thevale of crrency% and vice versa ,nteret Rate – -igh interest rates attract overseas

ca,ital leads in a,,reciation of crrency in short term. Inlong term% high interest rates slo)s the economy and

)ea(ens the crrency )olitical iue - Inflencing factor / Political stability


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+xchange Rate echanimType o# "eal

&ah T 6 7

Tom T 6 1

3pot T 6 !

0#ate at )hich deals are done. 'hey are also the base

rates for other !E1 #ates2

Forward T 6 8 ! Forward &ontract may be #or a #ixed date or #or a period

9option period i maximum $7 day i# it i in day or a Fullonth i# it i in month


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"i##erent Rate

32 '' $ying '' 4elling

52 $ill $ying $ill 4elling62 '" $ying '" 4elling

72 "8 $ying "8 4elling


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Academy of Excellence Inventing Methods for Igniting MindsAcademy of Excellence Inventing Methods for Igniting Minds

Authori(ed )eron % A4c

;aving 2icene #rom RB, #or Forex Buine

;aving emberhip o# F+"A, #or doing buine Athori9ed ealers * $ranch "ategory A + $ + "

Money "hangers * 0!!M"s & #M"s2

Offshore $an(ing :nits * 8ot dealing in Local crrency


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F+"A, - Role and Rule o# F+"A,

Hours of Business

Export Transactions

Import Transactions Clean Remittances

Forward Contracts

Dealing through accredited Brokers Inter Bank ettlement


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Releae o# Foreign exchange by A)

aintenance o# cloerelative> 9each category


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&urrent A4c % &apital A4c

Tranaction a##ecting Revenue> )ro#it % 2oaccount are &urrent A4c Tranaction

+xample - ,mport - +xport> Remittance #or ?i#t>

Travel> +xpenditure> Family aintenance

Tranaction a##ecting Balance 3heet> Aet or

2iabilitie are &apital A4c Tranaction +xample - ,mmovable )roperty> +quity 3hare>

,nvetment> Borrowing> +&B


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2iberied Remittance 3cheme

Reident ,ndividual only

aximum = !>*7>777 per F@ per ,ndividual. &an

be clubbed #or Family ember Any number o# tranaction within limit.

Any permiible &urrent A4c or &apital A4c

tranaction including purchae o# ,mmovable)roperty abroad

?i#t 4 "onation now covered under 2R3.


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Documents

Overview Forex One Session -Vrd-feb15