RESERVE BANK OF INDIA
EXCHANGE CONTROL DEPARTMENT
CENTRAL OFFICE
MUMBAI 400 001

To,
All Authorised Dealers in Foreign Exchange

Dear Sir,
Booking of Forward Contracts

Attention of authorised dealers is drawn to paragraph 3C.1(ii) of the Exchange Control Manual [cf. slip 5 enclosed to A.D. (M.A. Series) Circular No.21 dated 1st July 1998]. It has since been decided to withdraw the facility to rebook forward contracts (with rupee as one of the currencies) covering import transactions once cancelled. Such contracts may, however, be rolled over on or before maturity. Authorised dealers would henceforth be required to ensure while booking contracts for import transactions that the underlying exposure had not been hedged earlier and cancelled.
2. Authorised dealers may bring the contents of this circular to the notice of their concerned constituents.

3. The directions contained in this circular have been issued under Section 73(3) of the Foreign Exchange Regulation Act, 1973 (46 of 1973) and any contravention or non-observance thereof is subject to the penalties prescribed under the Act.

Yours faithfully,
KHIZER AHMED
Chief General Manager