112Futures contracts

#### 112 Futures contracts 112 Futures contracts > > (1) Subject to subsection (2), a board or committee may, in relation to— > > > > > (a) a sale or proposed sale of the commodity by the board or committee, or > > > > > (b) a borrowing or raising of money by the board or committee or a proposed borrowing or raising of money by the board or committee (including a borrowing or raising of money by the board or committee by dealing with securities), > > > > enter into and deal with contracts for hedging purposes at a futures market or at such other markets or with such other persons or institutions as may be prescribed. > > > (2) A board or committee shall not enter into or deal with futures contracts otherwise than in accordance with such guidelines (if any) as are from time to time determined by the Minister. > > > (3) A futures contract shall be taken to be entered into or dealt with for hedging purposes if, and only if, the contract is entered into or dealt with for the purpose of— > > > > > (a) minimising the risks of variations in the price obtainable for the commodity under a contract for the sale of the commodity that has been, or is to be, entered into by the board or committee, including risks of fluctuations in exchange rates, or > > > > > (b) minimising the risks of variations in the costs of the borrowing or raising of money by the board or committee or a proposed borrowing or raising of money, including risks of fluctuations in exchange rates.