FEMA · RBI Master Directions · IFSCA

Treasury & forex advisory

Funding, hedging and liquidity decisions for Indian groups sit inside a tight FEMA perimeter. We map every treasury structure to the permissible route, cost ceiling and reporting form.

Liquidity

Cross-border funding

  • External Commercial Borrowings — eligibility, all-in-cost, end-use and Form ECB/ECB-2
  • Trade credit, buyer's & supplier's credit structuring
  • Intercompany loans and shareholder funding within FEMA limits
  • Working capital lines through IFSC banking units
  • Rupee-denominated (masala) bonds and offshore debt listing
  • Guarantees, standby LCs and their FEMA reporting
Market risk

FX risk & hedging

  • Hedging policy design under the RBI Risk Management Directions
  • Forwards, options and swaps — permissible contracts and underlying rules
  • Natural hedging, netting and exposure aggregation
  • EEFC, RFC and foreign currency account operations
  • Mark-to-market monitoring and hedge accounting alignment
  • Board-level FX governance and limit frameworks
Governance

Treasury operations & controls

  • In-house bank, cash pooling and payment factory feasibility under FEMA
  • Global / regional treasury centre setup in GIFT IFSC
  • Repatriation, dividend and surplus fund upstreaming planning
  • AD Bank documentation, FIRC/BRC and outward remittance compliance
  • Treasury policy, delegation matrix and internal audit support
  • Contravention review and RBI compounding for legacy treasury breaches

ECB proceeds must satisfy end-use restrictions and be reported monthly in Form ECB-2; hedges require a permissible underlying exposure and contemporaneous documentation.

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Treasury & forex insights

Practical guidance for Treasury & forex

Decision-ready notes for finance teams managing funding, hedging, liquidity and foreign-currency controls.

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Funding

ECB or trade credit: which route fits the need?

A practical comparison of purpose, maturity, cost, end-use restrictions, reporting and documentation before arranging cross-border borrowing.

Key takeaway: Match the funding instrument to the underlying cash-flow need and permitted end use.

FX risk

A board-ready framework for FX hedging

How to define exposure, hedge ratios, permitted instruments, counterparty limits and evidence of the underlying transaction.

Key takeaway: A hedge policy needs measurable limits and a clear owner for exceptions.

Controls

Cash pooling under a FEMA compliance lens

The questions Indian groups should ask about account structure, guarantees, pricing, documentation and the movement of surplus cash.

Key takeaway: Centralisation is useful only when each movement remains traceable and permitted.