The Reserve Bank of India (RBI) on December 12, 2022, issued a notification on Hedging of Commodity Price Risk and Freight Risk in Overseas Markets (Reserve Bank) Directions. Resident entities in India are currently not permitted to hedge their exposure to the price risk of gold in overseas markets. On a review, RBI has decided to permit eligible entities to hedge their exposure to the price risk of gold on exchanges in the International Financial Services Centre (IFSC) recognized by the International Financial Services Centres Authority (IFSCA).
