Wednesday, September 19, 2018 New York : London: India: Tokyo:



It is imperative for corporates to have a board-approved policy in place for control, measurement and management of derivative transactions.

The Banks before undertaking any type of derivative transaction with corporates,require the derivative policy document duly approved by the board for their verification.

We are helping the corporates to have the suitable derivative policy in place for Board approval.

The following are the contents of the policy among others.

1)    Strategic responses..

2)   Approach paper for management of currency and rate risks on the long-term foreign currency liabilities of the company.

3)   Selection and choice of derivative transactions.

4)   Types of derivative transactions to be used/undertaken in relation to the company’s debt profile.

5)   Application of derivative transactions.

6)   Determination of potential exposures on derivative transactions.

7)   Risk quantification

8)   Risk mitigation strategies.

9)   Risk Control

10) Accounting standards as applicable for each type of derivative transaction classified as perfect hedge and/or otherwise.

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