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<h1>Derivative contracts permitted as capital account transactions; regulatory amendment allows residents and non residents to undertake them upon publication.</h1> The amendment adds a definition of Derivative as a future settled financial contract whose value derives from financial or non financial variables and substitutes Schedule entries to allow persons resident in India to 'Undertake derivative contracts,' while adding a corresponding entry to permit persons resident outside India to undertake derivative contracts; the amendment takes effect on publication in the Official Gazette.