Section 2 in The Foreign Exchange Management (Foreign Exchange Derivative Contracts) Regulations, 2000
2. Definitions. - In these regulations, unless the context requires otherwise, -
(i)"Act" means the Foreign Exchange Management Act, 1999 (42 of 1999);(ii)[ 'authorized dealer' means a person authorised as such by Reserve Bank under subsection (1) of section 10 of the Act;][***] [Deleted '(iii) 'cash delivery' means delivery of foreign exchange on the day of transaction;' by Notification No. FEMA.398/RB-2020, dated 18.02.2020 (w.e.f. 03.05.2000).][***] [Deleted '(iv) 'forward contract' means a transaction involving delivery, other than cash or tom or spot delivery, of foreign exchange;' by Notification No. FEMA.398/RB-2020, dated 18.02.2020 (w.e.f. 03.05.2000).](v)[ "Foreign exchange derivative contract" means a financial contract which derives its value from the change in the exchange rate of two currencies at least one of which is not Indian Rupee or which derives its value from the change in the interest rate of a foreign currency and which is for settlement at a future date, i.e. any date later than the spot settlement date, provided that contracts involving currencies of Nepal and Bhutan shall not qualify under this definition.] [Substituted by Notification No. FEMA.398/RB-2020, dated 18.02.2020 (w.e.f. 03.05.2000).][***] [Deleted '(va) 'currency futures' means a standardized foreign exchange derivative contract traded on a recognized stock exchange to buy or sell one currency against another on a specified future date, at a price specified on the date of contract, but does not include a forward contract;' by Notification No. FEMA.398/RB-2020, dated 18.02.2020 (w.e.f. 03.05.2000).][***] [Deleted '(vi) 'Registered Foreign Institutional Investor (FII)' means a foreign institutional investor registered with Securities and Exchange Board of India;' by Notification No. FEMA.398/RB-2020, dated 18.02.2020 (w.e.f. 03.05.2000).](vii)"Schedule" means a Schedule annexed to these regulations;[***] [Deleted '(viii) 'spot delivery' means delivery of foreign exchange on the second working day after the day of transaction;' by Notification No. FEMA.398/RB-2020, dated 18.02.2020 (w.e.f. 03.05.2000).][***] [Deleted '(ix) 'tom delivery' means delivery of foreign exchange on a working day next to the day of transaction;' by Notification No. FEMA.398/RB-2020, dated 18.02.2020 (w.e.f. 03.05.2000).](x)the words and expressions used but not defined in these regulations shall have the same meanings respectively assigned to them in the Act.[***] [Deleted '(xi) 'Qualified Foreign Investor (QFI)' means a person resident outside India as defined in Regulation 2 of FEMA 20/RB-2000 dated May 3, 2000.' by Notification No. FEMA.398/RB-2020, dated 18.02.2020 (w.e.f. 03.05.2000).](xii)[ 'Contracted exposure' refers to currency risk arising on account of current and capital account transactions permissible under the Act or any rules or regulations made thereunder, that have been entered into. [Added by Notification No. FEMA.398/RB-2020, dated 18.02.2020 (w.e.f. 03.05.2000).](xiii)'Anticipated exposure' refers to currency risk arising on account of current and capital account transactions permissible under the Act or any rules or regulations made thereunder, that are proposed to be entered into in future.(xiv)'Currency risk' means the potential for loss on account of movement in exchange rates of Rupee against a foreign currency or on account of movement in exchange rates of one foreign currency against another or on account of movement of interest rate applicable to a foreign currency.(xv)'Hedging' means the activity of undertaking a foreign exchange derivative transaction to manage currency risk.(xvi)'Exchange traded currency derivatives' means a standardised foreign exchange derivative contract traded on a recognized stock exchange to buy or sell one currency against another on a specified future date, at a price specified on the date of contract.]
