Foreign exchange derivative hedging: permitted instruments subject to rupee specific hedging limits and RBI prescribed conditions. The Regulations permit specified foreign exchange derivative instruments (forwards, exchange-traded currency derivatives, swaps, options and cost-reduction structures) for hedging contracted or anticipated exposures with authorised dealers. Contracts involving the rupee are restricted to hedging purposes, require disclosure of exposure details to the authorised dealer, and cancellation/rebooking of rupee contracts is constrained except as permitted by the Reserve Bank of India; non-rupee hedges and borrowings-linked hedges are subject to RBI approval, notional/principal and maturity limits.