Hedging requirement :

Eligible Borrowers shall have a board approved risk management policy and shall keep their ECB exposure hedged 100% at all times. Further, the designated AD Category-I bank shall verify that 100% hedging requirement is complied with during the currency of ECB and report the position to RBI through ECB 2 returns. Also, the entities raising ECB under the provisions of tracks I and II are required to follow the guidelines for hedging issued, if any, by the concerned sectoral or prudential regulator in respect of foreign currency exposure.