Currency Risk Management Policy - Development
Assignment

Good Corporate Governance as well as Reserve Bank of India guidelines/directives require corporates to have well-documented, Board-approved Currency Risk Management Policy in place to manage the company’s currency exposures.

Basix Forex can help you with developing and documenting your company’s Currency Risk Management Policy on a project- assignment basis. Basix has helped develop and implement such Policy for a good number of companies including MNC corporates and Public Sector undertakings.

Enquiries in this regard can be made with

Mr. David Arputharaj, Managing Director

Email:david@basixfx.com

Mob: 98400 47920 Tel: 044-2834 5723

 

Await announcement of

Date and Venue 

for the next Basix Training Programme

on

Foreign Exchange Markets & Derivative

 

Programme Content

 Session 1 - The Foreign Exchange Market  

  • The state of the Indian and Global Forex Markets
  • Spot versus Forward Contracts
  • Misconceptions revisited
  • Regulatory scenario
  • Outlook for the Rupee and the major currencies

Session 2 -  Currency Options

  • Concept – The alternative to Forward Contracts
  • The instrument
  • Hedging with Options
  • Packaged Options 
    • Straddles
    • Strangle
    • Spread
  •  Zero-cost structures
    • Range Forwards, Ratio Range Forwards
    • Participating Forwards
  • Exotic Options 
    • Barrier Options –Knock In, Knock Out
    • Average Rate Options 
    • Others –quick run-down
  • Analysis of some frequently recommended option structures by banks
  • Regulations governing Derivative transactions

  Session 3 -  Pricing of Vanilla Options

  • Components of Option Premium – Intrinsic Value, Time Value
  • The Black Scholes Formula for Pricing Options
  • Formula for pricing Currency Options
  • Factors affecting Option Premium
  • Sensitivity of Option Premium to changes in Spot, Volatility, Time to Expiration &  Interest rates -  “The Greeks” –Delta, Vega, Theta(time decay) , Rho & Gamma

Session 4 – FRAs, Swaps & Risk Management of Foreign Currency Loans

  • Libor & Libor in arrears
  • Forward Rate Agreement
  • Interest Rate Swap
  • Principal Only Swap
  • Currency Swap
  • Marking to market (MTM) and managing risk on ECBs and FCNR(B) loans

David Arputharaj,Course Director: is the Managing Director of Basix Forex and a well-known forex expert with nearly 25 years of hands-on experience in forex trading, derivatives and consulting.  He has a brilliant academic and professional background – M.Sc. Mathematics from IIT,Madras,Associate of the Institute of Bankers,London and India and the Association Cambiste International,Paris.He has received training extensively in various multi-national banks during his two- decades- long banking career. He has been Chief Dealer – forex in Syndicate Bank, Delhi, Bank of America, Bombay and Saudi French Bank, Riyadh. He is a past President of the Forex Association of India. As a leading consultant in the country, he has been advising and training Indian corporates,exporters and importers on currency risk management with or without derivatives for the past eight years.

Who May Attend  

MDs, CEOs, CFOs, Financial Controllers, Corporate Treasurers & Treasury Staff, Head- Finance & Finance Department officers, Corporate Dealers and Treasury Sales Executives, Back-office personnel handling forex and derivative transactions, Forex managers, Product Control, Audit & Risk Management staff in banks and corporate treasuries, Exporters and Importers