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<h1>Commodity hedging permits residents and SEZ units to use foreign commodity contracts to hedge price risk under RBI conditions.</h1> Regulation 6 permits residents to enter into commodity exchange contracts outside India to hedge commodity price risk with Reserve Bank permission under Schedule III and applicable terms; authorised dealer banks may permit resident companies to undertake such hedges subject to Reserve Bank stipulations; SEZ units may enter export/import hedges on a stand-alone basis isolated from parent or related entity financial contracts.