The Reserve Bank of India (RBI) has decided to allow hedging of gold price risk in the Over the Counter (OTC) Market in the International Financial Services Centre (IFSC).
The step has been taken with a view to providing flexibility to resident entities to hedge their exposures to gold price risk efficiently, the RBI said on Thursday.
Resident entities were permitted, in December 2022, to access recognised exchanges in the International Financial Services Centre (IFSC). The hedging facility will now provide them more flexibility and easier access to derivative products in hedging their exposure to gold prices, the RBI said.