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<h1>Foreign Exchange Derivatives Now Require RBI Approval: Strict Regulatory Oversight Mandates Pre-Authorization for All Transactions</h1> The regulation prohibits any person in India from entering into a foreign exchange derivative contract or currency futures without prior permission from the Reserve Bank. This statutory provision establishes a strict regulatory framework governing foreign exchange derivative transactions, requiring explicit authorization before execution. The regulation aims to control and monitor foreign exchange derivative activities within the country's financial system.