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Masterclass

Masterclass: Institutional Approaches to Forex and Commodity Risk Management

How Indian corporate treasuries, funds and family offices actually manage currency and commodity risk, taught the way a treasury head would teach a new hire. Starts with the risk mandate: what a hedging policy exists to protect, how RBI, FEMA and SEBI carve up the market into bank OTC forwards, NSE currency derivatives and MCX commodity contracts, and why the NDF market matters even to those who never touch it. Builds a full exposure map across transaction, translation and economic exposure, then quantifies it with VaR, cash-flow-at-risk and stress tests. Works through every hedging instrument in detail: forwards and the interest rate parity behind the forward premium, USDINR futures and options, cross-currency swaps, MCX and NCDEX futures, options on commodity futures, basis and roll risk. Closes with programme design: hedge ratios, layered hedging, Ind AS 109 hedge accounting, treasury governance, and case studies of Indian hedges that worked and hedges that blew up. Built for HNIs, family offices, fund managers and allocators who need to judge, run or oversee a hedging programme.

Hedging Policy and Risk MandateFEMA, RBI and SEBI FrameworkExposure Measurement and VaRForwards and Interest Rate ParityUSDINR Futures and OptionsNDF MarketsMCX and NCDEX Commodity HedgingBasis and Roll RiskHedge Ratios and Layered HedgingInd AS 109 Hedge AccountingTreasury GovernanceHedging Case Studies

MODULES

6

DURATION

~4.5 hrs

TRACK

Alternative Investing

What You'll Master

Write a hedging policy that states what is protected, how much, for how long, and who decides

Map transaction, translation and economic exposure for an Indian importer, exporter or commodity user

Quantify exposure with VaR, cash-flow-at-risk and stress tests, and know where each one lies

Price a USDINR forward from interest rate parity and judge when the forward premium is worth paying

Choose between bank forwards, NSE currency futures, options and cross-currency swaps for a given exposure

Hedge gold, crude, base metals and agri exposure on MCX and NCDEX while controlling basis and roll risk

Set hedge ratios, build layered hedge ladders, and apply Ind AS 109 hedge accounting correctly

Recognise the governance failures behind famous hedging disasters before they happen to you

Access Level

LEARNER

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Everything included

Full Text Playbooks

Actionable Exercises

Mobile Reading Mode

Lifetime Updates

Curriculum Breakdown

Chapter 1: The Institutional Risk Mandate

4 Lessons

Why Institutions Hedge: Protecting Cash Flows, Not Predicting Prices10 min read

The Indian Rulebook: FEMA, RBI Hedging Norms, and SEBI's Exchange Framework12 min read

Three Markets, One Rupee: Bank Forwards, NSE Currency Derivatives, and the NDF Market11 min read

Writing the Hedging Policy: Objectives, Limits, Authority, and Reporting11 min read

Chapter 2: Measuring Exposure Before Hedging It

4 Lessons

Transaction, Translation, and Economic Exposure for an Indian Balance Sheet12 min read

Building the Exposure Map: Netting, Natural Hedges, and the Residual11 min read

Value at Risk and Cash-Flow-at-Risk: Sizing the Damage in Rupees13 min read

Stress Tests and Scenario Analysis: 2013 Taper Tantrum, 2020 Crude Crash, 2022 Rate Shock11 min read

Chapter 3: Forex Hedging Instruments and Their Pricing

5 Lessons

Forward Contracts and Interest Rate Parity: Where the USDINR Premium Comes From13 min read

USDINR Futures on NSE: Contract Specs, Margins, Settlement, and Rollover11 min read

Currency Options: Buying Protection, Selling Premium, and Zero-Cost Collars13 min read

Cross-Currency Swaps and ECB Hedging: Converting a Dollar Loan Into Rupee Risk12 min read

Choosing the Instrument: A Decision Framework for Exporters, Importers, and Fund Managers10 min read

Chapter 4: Commodity Hedging on Indian Exchanges

5 Lessons

MCX and NCDEX: Contract Design, Delivery Logic, and Who Actually Hedges There12 min read

Hedging Gold and Silver Exposure: Jewellers, Bullion Dealers, and Family Offices12 min read

Hedging Crude and Energy Exposure: Refiners, Airlines, and the Brent-to-MCX Basis12 min read

Base Metals and Agri Commodities: Aluminium, Copper, Cotton, and Guar Seed Hedges11 min read

Basis Risk, Roll Yield, and Contango: The Hidden Costs of a Commodity Hedge13 min read

Chapter 5: Designing and Running the Hedge Programme

4 Lessons

Hedge Ratios: Minimum Variance, Regression Beta, and Why 100 Percent Is Rarely Right12 min read

Layered Hedging and Rolling Ladders: Smoothing the Rate Over Time11 min read

Ind AS 109 Hedge Accounting: Cash Flow Hedges, Fair Value Hedges, and Effectiveness Testing13 min read

Treasury Governance: Counterparty Limits, Mark-to-Market Reporting, and the Board Pack11 min read

Chapter 6: Case Studies, Failures, and the Practitioner's Checklist

4 Lessons

Case Study: How Indian IT Exporters Hedge Dollar Revenue Through Rupee Cycles12 min read

Case Study: Airline Fuel Hedges That Saved Cash and Hedges That Sank Balance Sheets12 min read

When Hedging Becomes Speculation: Exotic Structures, KIKO Options, and the 2008 Lessons12 min read

The Practitioner's Checklist: Reviewing Any Hedging Programme in an Afternoon10 min read