forward contracts

Bill on forward contracts introduced in LOK SABHA

The Forward Contracts (Regulation) Amendment Bill ( FCRA bill) was, at long last, introduced the Lok Sabha on Monday by food MoS K V Thomas . The proposed amendments, long awaited by commodity participants in the country, are expected to restructure
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Union Cabinet approves amendment to the Forward Contracts (Regulation) Act 1952

The Union Cabinet today approved amendments to the Forward Contracts (Regulation) Act 1952 by introducing the Forward Contracts (Regulation) Amendment Bill, 2010 in the Parliament. After the Bill is passed and enacted by the Parliament, Forward Mark
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Deductibility of premium on forward contracts in the year of entering into such contracts

The Delhi High Court (HC) [2010-TIOL­42-HC-DEL-IT] in the case of CIT v. Industrial Finance Corporation of India (Taxpayer) which held that the difference between forward rate and exchange rate prevailing on the date of entering into forward contracts is fully allowable as deduction even if the difference is amortized in the books of account over the life of the forward contracts.
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RBI circular on Ready Forward Contracts in Corporate Debt Securities

It has been decided to introduce repo in corporate bonds. In this regard, the Reserve Bank of India has issued a direction IDMD.DOD.04/11.08.38/2009-10 dated January 08, 2009 under section 45W of the RBI Act, 1934, which has been placed on the Reserve Bank of India website. A copy of the direction is enclosed.
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