Sr. No.
|
Country
|
Currency
|
Code
|
1
|
America
|
Dollar
|
USD or US$
|
2
|
Canada
|
Dollar
|
CND or Can$
|
3
|
United Kingdom
|
Pound-Sterling
|
GBP or UK£
|
4
|
Switzerland
|
Francs
|
SFR or CHF
|
5
|
Japan
|
Yen
|
JPY or ¥
|
6
|
Australia
|
Dollar
|
AUD or AS$
|
7
|
Belgium
|
Francs
|
BeF
|
8
|
Europe*
|
Euro
|
€
|
|
Germany
|
Deutsche Mark
|
DM
|
|
Holland
|
Dutch Guilder
|
DG
|
|
France
|
French Franc
|
FFR
|
|
Spain
|
Spanish Peseta
|
PTE
|
|
Italy
|
Italian Lira
|
ITL
|
|
Denmark
|
Danish Kroner
|
Dkr
|
* The currency of above six countries are out of circulation and is being replaced by Euro, a single currency for European Countries.
|
The arbitrage opportunity may be traced by plotting simple two-line graphs as under
Particulars
|
Rs.
|
Spot Rate
|
78.100
|
Add: 4% premium for 3 months (78.10 x 4% x 3/12)
|
00.781
|
Forward Rate
|
78.881
|
Spot TT Buying Rate
|
HC
|
Spot TT Selling Rate
|
HC
|
Base Rate (Spot IB Buy Rate)
|
48.5500
|
Base Rate (Spot IB Sell Rate)
|
48.7000
|
Less: Exchange Margin (0.025%-0.080%)
|
0.0380
|
Add: Exchange Margin (0.125%-0.150%)
|
0.0731
|
Spot TT Buying Rate
|
48.5120
|
Spot TT Selling Rate
|
48.7731
|
R/o to nearest multiple
|
48.5125
|
R/o to nearest multiple
|
48.7725
|
|
|
|
|
Bill Buying Rate
|
HC
|
Bill Selling Rate
|
HC
|
Base Rate (Spot IB Buy Rate)
|
Xx
|
Base Rate (Spot IB Sell Rate)
|
Xx
|
Add: Forward Premium
(for forward period, transit period and usance period: round of to lower month)
|
Xx
|
Add: Exchange Margin for TT selling (0.125%-0.150%)
|
Xx
|
Or
|
|
TT Selling Rate
|
Xx
|
Less: Forward Discount
(for forward period, transit period and usance period: round of to higher month)
|
(xx)
|
Add: Exchange Margin for Bill selling (0.175%-0.200%)
|
Xx
|
|
Xx
|
Bill Selling Rate
|
|
Less: Exchange Margin for Bill Buying (0.125%-0.150%)
|
Xx
|
R/o to nearest multiple
|
Xx
|
Bill Buying Rate
|
Xx
|
Rupee value (Rate x units of FC)
|
|
R/o to nearest multiple
|
Xx
|
Add: Recovery of any exp
|
|
Rupee value (Rate x units of FC)
|
Xxxx
|
|
|
Less: Interest to be recovered
|
Xx
|
|
|
Less: Recovery of any other exp
|
Xx
|
|
|
Net Amount Payable to client
|
Xxxx
|
|
|
|
|
|
|
TT and Bill Buying Rate
|
HC
|
TT and Bill Selling Rate
|
HC
|
Base Rate (Spot IB Buy Rate)
|
Xx
|
Base Rate (Spot IB Sell Rate)
|
xx
|
Add: Forward Premium
(for forward period, transit period and usance period: round of to lower month)
|
Xx
|
Add: Forward Premium
(for forward period, transit period and usance period: round of to lower month)
|
xx
|
Or
|
|
Or
|
|
Less: Forward Discount
(for forward period, transit period and usance period: round of to higher month)
|
(xx)
|
Less: Forward Discount
(for forward period, transit period and usance period: round of to higher month)
|
xx
|
|
Xx
|
|
xx
|
Less: Exchange Margin
For TT - (0.025%-0.080%) and
For Bill - (0.125%-0.150%)
|
Xx
|
Add: Exchange Margin for TT selling (0.125%-0.150%)
|
xx
|
TT / Bill Buying Rate
|
Xx
|
Forward TT Selling Rate
|
Xx
|
R/o to nearest multiple
|
Xx
|
R/o to nearest multiple
|
Xx
|
Rupee value (Rate x units of FC)
|
Xxxx
|
Add: Exchange Margin for Bill selling (0.175%-0.200%)
|
Xx
|
Less: Interest to be recovered
|
Xx
|
Forward Bill Selling Rate
|
Xx
|
Less: Recovery of any other exp
|
Xx
|
R/o to nearest multiple
|
xx
|
Net Amount Payable to client
|
Xxxx
|
|
|
Landmark Judgments: Important Provisions of the EPF & ESI Act interpreted by the Honorable Supreme Court of India