Domestically, as the economy is opening up with increasing capital account convertibility and getting more and more integrated with the global economy, there are an increasing number of domestic entities getting exposed to foreign exchange risk and hence may need to access the foreign exchange market. Going forward, these trends are likely to accentuate.
With different players, there will be diverse needs and Authorised Dealers will need to gear up to serve these needs. Illustratively, the hedging needs of an exporter or importer are very different from that of a corporate issuing foreign currency denominated bonds in offshore markets or setting up an overseas subsidiary. 31.