FOREIGN CURRENCY LOANS FROM FINANCAL INSTITUTIONS AND BANKS

Ø Foreign Currency Loans from Financial Institutions

Ø Fixed‑rate Borrowings

Ø Comparative Cost Advantage

Ø Methods of Raising Foreign Currency Loans

Ø Lines of Credit

Ø Selection of Foreign Currency

Ø Exchange Risk

Ø How to Cover the Foreign Exchange Risk?

‑ Forward Contracts

‑ Currency Futures

‑ Currency Option

Ø Foreign Currency‑Rupee Swaps

Ø Hedging of Loan Exposures

Ø Determinants of Options Value

Ø Caps and Collars

Ø RBI Regulations on Exchange Risk Management

Ø RBI Guideline on Exchange Risk Management

Ø Currency Options and FEDAI Guidelines

Ø Obtaining Foreign Currency Loan from IDBI

Ø Direct Finance Scheme

Ø Appendix 10.I : Text of Foreign Exchange Management (Foreign Exchange Derivative Contracts) Regulations, 2000