FPI access to currency derivatives permitted for hedging, subject to exchange position limits and custodian monitoring and reporting. FPIs are allowed to participate in exchange traded currency derivatives to hedge currency risk on their Indian debt and equity exposures, trading through registered exchange members and subject to prescribed exchange-level position limits; positions beyond limits require demonstrable underlying exposure with the onus on the FPI. Exchanges must report FPI-wise positions to custodian banks, which aggregate positions across venues and OTC contracts, monitor excesses relative to market value of holdings, report transgressions, and trigger applicable penal and foreign exchange actions where aggregated contracts exceed holdings.