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Question
The term ‘bilateral netting’ is related to which of the following?
Options:
A .  Power sector contracts
B .  Inter-government contracts
C .  Financial contracts
D .  Tax avoidance related contracts
Answer: Option C
Answer: (c)
A bilateral netting agreement enables two counterparties in a financial contract to offset claims against each other to determine a single net payment obligation due from one counterparty to the other.
As of now, bilateral netting for financial contracts is not allowed in India and the government is planning to introduce a bill. (No need to go into detail)

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