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<h1>Foreign exchange derivative contracts under FEMA 2000 allow residents and non-residents to trade with authorized dealers for hedging exposures</h1> Foreign exchange derivative contract regulations under FEMA 2000 permit residents and non-residents to enter derivative contracts with authorized dealers. Rupee-involving contracts must hedge contracted or anticipated exposures, with exceptions permitted by Reserve Bank of India. Exchange-traded currency derivatives on recognized exchanges require hedging of contracted exposures and authorized dealer monitoring beyond prescribed position limits. Persons must share exposure details with dealers when requested. Non-rupee settlements are restricted to authorized dealers and non-residents as permitted by RBI directions.