| From Indiatimes.com: Losses on commodity price hedging are turning out to be the latest bone of contention between banks and corporates. There were at least two instances where mid-sized companies have refused to pay a large British bank after they suffered huge hedging losses on contracts entered into with the bank.
Federation of Indian Export Organizations director general Ajay Sahai said several such instances had been reported to the organisation. “There are several contracts, both forex and commodity price hedges, that are in violation of RBI norms. As banks are the authorised dealers in these transactions, it is their responsibility to educate the customers on the risks in such transactions. We have taken up the matter with the RBI,” he said..... Full Article: Source
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