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NPV for Cash Settlement

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Hi All,

 

As per the latest RBI Guidelines, the gain / losses arising out of forward contract has to be settled on a discounted basis instead of settling on value date, using market int rate.

 

Any pointers on how this could be implemented wherein during cash settlement, we enter the settlement rate given by bank but the cash flow calcualted is the NPV?

 

Regards,

Rohit


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