Search Global Export Import Trade Data
Recent Searches: No Recent Searches

FEDAI Rules-7, Exchange Contracts.

Contact amounts
Option period of deliver
Place of delivery
Date of delivery
Option of delivery
Option of usance
Merchant quotation
Rounding off Rupee equivalent of the foreign currency
Contract amount

Contract Amounts RULE 7-Exchange contracts

  1. Contact amounts

    Exchange contracts shall be for definite amounts i.e. there shall be no provision for excess or shortfall.

    When a bill contract mentions more than one rate for bill of different deliveries, the contract must state the amount and delivery against each such rate.


    Value of the export order dated 1.1.96 for US$60,000/- expiring – Delivery period 31.3.96, 30.4.96 and 30.6.96 –
    US$20,000/- each.
    96/1 US$20,000 1.3.96 TO 31.3.96 RS 36.6200/-
    96/2 US$20,000 1.4.96 TO 30.4.96 RS 37,0700/-
    96/3 US$20,000 1.6.96 TO 30.6.96 RS 37,9700/-
    For the first shipment effected say on 15.3.1996 the exporter should indicate the contract No. as 96/1 and the rate as Rs. 36.6200.
  2. Option period of deliver

    Unless date of delivery is fixed and indicated in the contract, the option period of delivery should be specified
    as a calendar week (i.e. 1st to 7th, 8th to 15th, 16th to 23rd or 24th to last working day of the month) or a calendar fortnight (i.e. 1st to 15th or 16th to last working day of the month). In any case, the option of delivery shall not extend beyond one calendar month, (i.e. 1st to last working day of the month). If the fixed date of delivery or the last date of delivery option is a holiday/ declared a holiday the delivery shall be effected/ delivery option exercised on the preceding working day. Contracts permitting option of delivery must state the first and last dates of delivery.dy” or “cash” merchant contract shall be deliverable on the same day. “Value next day” contract shall be deliverable on the day immediately succeeding the contract date. A spot contract shall be deliverable on second succeeding business day following the day when the transaction is closed.
  3. Place of delivery

    All contracts shall be understood to read “to be delivered or paid for at the bank” and “at the named place”.
  4. Date of delivery

    Date of delivery under forward contracts will be:
    1. In case of bills/ document negotiated, purchased or discounted – date of negotiated, purchased/ discount and payment of rupees to customer.
    2. In case of bills/ documents sent for collection-date of payment of Rupees to customer on realization of the bills.
    3. In case retirement/ crystallisation of import bills/ document- the date of retirement/ crystallisation of liability whichever is earlier.
  5. Option of delivery

    In all forward merchant contracts, the merchant whether a buyer or a seller will have the option of delivery.
  6. Option of usance

    The merchant purchase contract should state the tenor of the bills/ documents. Acceptance of delivery of bills/ documents drawn for a different tenor will be at the discretion of the bank.
  7. Merchant quotation

    In order to simplify and establish transparency, the exchange rate will be quoted in direct terms i.e. so many Rupees and Paise for 1 unit of foreign currency or 100 units of foreign currencies (with effect from 2nd August 1993).
    The merchant (as well as interbank) rate should be quoted upto four decimals, the last two digits being in multiples of 25 (for example US$1 = Rs. 34.3250, 1 Pound Sterling = Rs. 52.4350). The card rates of member banks should be quoted in two rates decimals. For the sake of software programming the card rates may be indicated in four decimals, provide the last two decimals are “00” (i.e. US$ = Rs. 34.9000).

    [The exchange rate for the euro will be quoted in direct terms i.e. so many rupees and paise for 1 unit of the euro. The merchant (as well as interbank) rates for the euro shall be quoted upto four decimal, the last two digits being in multiples of 25. The card rates of member banks shall be quoted in two decimals. For the sake of software programming the card rate may be indicated in four decimals provided the last two decimal are 00.]

    A list of common currencies and the unit of rate quotations are as detailed below:

    Currencies to be quoted against one unit of foreign currency:
    1. Australian Dollar
    2. Austrian Schilling
    3. Bahraini Dinar
    4. Canadian Dollar
    5. Danish Kroner
    6. Deutsche Mark
    7. Dutch Guilder
    8. Egyptian pound
    9. European Currency Unit (E.C.U.)
    10. Finnish Mark
    11. French Franc
    12. Hongkong Dollar
    13. Irish Punt
    14. Kuwaiti Dinar
    15. Malaysian Ringgit
    16. New Zealand Dollar
    17. Norweigian Kroner
    18. Omani Rial
    19. Qatar Rial
    20. Saudi Riyal
    21. Singapore Dollar
    22. Sterling Pound
    23. Swedish Kronor
    24. Swiss Franc
    25. Thai Bhat
    26. UAE Dirham
    27. US Dollar
    28. EURO2

    Currencies to be quoted against 100 unit of foreign currencies:
    1. Belgian Franc
    2. Indonesian Rupiah
    3. Italian Lira
    4. Japanese yen
    5. Kenyan Schilling
    6. Spanish Peseta

    Asian Clearing Union currencies to be quotes against 100 units of foreign currencies:
    1. Bangladesh Taka
    2. Burmese Kyat
    3. Iranian Rial
    4. Pakistan Rupee
    5. Sri Lanka Rupee

    (Note: With effects from 01.01.96 the settlement procedure has been revised to ACU Dollar)
  8. Rounding off Rupee equivalent of the foreign currency at the agreed merchant rate Settlement of all merchant transactions shall be effected on the principle of rounding off the Rupees amounts to the nearest whole Rupee i.e. without paise.

    Note: In terms of the above Rule amount upto 49 paise of the Rupee shall be ignored and amount from 50 to
    99 paise of the Rupee equivalent shall be rounded off to the next Rupe
  9. Charges

    On each forward sale or purchase contract booked, a minimum commission of Rs. 250/- shall be recovered from the customer. (AR 10/95 dated 20.12.95)
  10. Contract amount

    Any excess amount over the amount stated in a contract, or shortfall therein, shall be bought or sold, as the case may be, at the bank’s current spot rate of the day and the amount of the excess in the contract shall be cancelled as per Rule 8 IV.

    Please see “Clarification” at the end of this chapter Rule 7 Exchange contracts

Get Sample Now

Which service(s) are you interested in?
 Export Data
 Import Data
 Exim Help

What is New?

Date: 06-06-2024
Notification No. 40/2024 - Customs (N.T.)
Exchange Rate Notification No. 40/2024-Cus (NT) dated 06.06.2024-reg

Date: 16-05-2024
Notification No. 36/2024 - Customs (N.T.)
Exchange Rate Notification No. 36/2024-Cus (NT) dated 16.05.2024-reg

Date: 02-05-2024
Notification No. 34/2024 - Customs (N.T.)
Exchange Rate Notification No. 34/2024-Cus (NT) dated 02.05.2024-reg.

Date: 18-04-2024
Notification No. 30/2024 - Customs (N.T.)
Exchange Rate Notification No. 30/2024-Cus (NT) dated 18.04.2024-reg.

Date: 15-04-2024
Notification No.29/2024-CUSTOMS (N.T.)
Fixation of Tariff Value of Edible Oils, Brass Scrap, Areca Nut, Gold and Silver- Reg

Date: 12-04-2024
Seeks to extend the due date for filing of FORM GSTR-1, for the month of March 2024

Date: 10-04-2024
NOTIFICATION No. 08/2024- Central Tax
Seeks to extend the timeline for implementation of Notification No. 04/2024-CT dated 05.01.2024 from 1st April, 2024 to 15th May, 2024

Date: 09-04-2024
Notification No. 28/2024-CUSTOMS (N.T.)
Fixation of Tariff Value of Edible Oils, Brass Scrap, Areca Nut, Gold and Silver- Reg.

Date: 08-04-2024
Notification No 07/2024 – Central Tax
Seeks to provide waiver of interest for specified registered persons for specified tax periods

Date: 05-04-2024
Notification No. 23/2024-Customs
Seeks to amend No. 64/2023-Customs, dated the 7th december, 2023 in order to allow duty free imports of yellow peas with bill of lading issued on or before 30.06.2024

Exim Guru Copyright © 1999-2024 Exim Guru. All Rights Reserved.
The information presented on the site is believed to be accurate. However, InfodriveIndia takes no legal responsibilities for the validity of the information.
Please read our Terms of Use and Privacy Policy before you use this Export Import Data Directory.


C/o InfodriveIndia Pvt Ltd
F-19, Pocket F, Okhla Phase-I
Okhla Industrial Area
New Delhi - 110020, India
Phone : 011 - 40703001