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Enron Mail |
One of the problems with Indian derivatives is that when foreign exchange is
involved, Reserve Bank of India approval is required in advance of the transaction. A $US deal would involve foreign exchange from an Indian counterparty's point of view. Certain transactions have pre-approved status but an ECT commodity swap is not one of them. I'm still trying to track down whether a commodity deal can be done at all, even with RBI approval. I've also asked whether, if approved commodity swaps are permitted but not by ECT, it might be possible to use an Indian bank or other approved dealer as an intermediary. Marc De La Roche 02/16/99 10:52 AM To: Mark - ECT Legal Taylor/HOU/ECT@ECT cc: Doug Leach/HOU/ECT@ECT Subject: Re: Naphtha Hedge Mark, Since the Platt's Arab Gulf FOB Naphtha Index that is being used in the naphtha supply contract between DPC and Glencore is in $US/MT, I think it would probably be best to use $US as the currency for the proposed DPC hedge. The standby L/C that we wouyld require DPC to post in ECT's favor would also be denominated in $US. Marc To: Marc De La Roche/HOU/ECT@ECT cc: Subject: Re: Naphtha Hedge Marc: In what currency will the proposed DPC hedge be denominated?
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