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<h1>RBI Permits FIIs and NRIs to Invest in SEBI-Approved Exchange Traded Derivatives, Amends Foreign Exchange Management Act Regulations.</h1> The Reserve Bank of India has issued a circular permitting registered Foreign Institutional Investors (FIIs) and Non-Resident Indians (NRIs) to invest in exchange traded derivative contracts (ETDCs) approved by the Securities and Exchange Board of India (SEBI). FIIs can trade in all SEBI-approved ETDCs, while NRIs can invest using INR funds held in India on a non-repatriable basis, without repatriation benefits. These changes are part of liberalization measures and are reflected in the amended Foreign Exchange Management Act regulations. Authorized dealers are instructed to inform their relevant clients of these updates.