Foreign Exchange Management

Syllabus

                                           FM-302: Foreign Exchange Management

Time 3 Hours                                                                                             External: 70

Max. Marks: 100                                                                                        Internal: 30

International Monetary Systems: Historical Background and Structure. Foreign Exchange Market: Nature, Participants and Structure. Foreign Exchange Quotations: Direct and Indirect. Convertibility of Rupee, Current Account Convertibility and Capital Account Convertibility.

Exchange Rate: Meaning, Spread, Official and Free Market Rates, Cross Currency Rates, Forward Rates, Exchange Rates Determination Theories, Factors Affecting, Flexible vs. Fixed Exchange Rates, Exchange Rate Regime, Liberalized Exchange Rate Management System (LERMS).

Currency Forwards, Currency Futures and Currency Options, Currency Swaps. Currency Forwards vs. Currency Futures Contracts.

Foreign Exchange Exposure: Introduction, Nature and Magnitude. Types of Exposure: Transaction, Translation and Economic, Their Measurement and Management.

Tax Treatment of Foreign Exchange Gains and Losses. Foreign Exchange Control in India, RBI guidelines, Important Provisions of FEMA.