Indian central bank issues clarifications on FX hedging curbs

MUMBAI, Oct 15 (Reuters) — The Reserve Bank of India on Thursday issued clarifications on its latest policy measures to support the rupee, following concerns about tighter hedging rules and cash margins on certain derivatives used to protect against a weaker rupee. The RBI has announced a series of measures since October 10, including redirecting oil companies' dollar purchases to a special facility and levying cash reserve requirements on FX hedges for import liabilities and banks' own assets and liabilities. The measures sparked unintended consequences, with several lenders holding back on quoting dollar-rupee forwards due to confusion over which transactions the cash margin requirement would be levied on. (Reporting by Jaspreet Kalra in Mumbai; Editing by Leroy Leo) ((jaspreet.kalra@thomsonreuters.com; +91-8769636545;)