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<h1>RBI Amends Regulations Allowing SEZs to Hedge Price Risks Abroad Without Prior Approval Under FEMA Act, 1999.</h1> The Reserve Bank of India issued amendments to the Foreign Exchange Management (Foreign exchange derivative contracts) Regulations, 2000, under the Foreign Exchange Management Act, 1999. Effective upon publication in the Official Gazette, these amendments allow units in Special Economic Zones (SEZs) to enter into commodity exchange contracts outside India without prior RBI approval. This is permitted for hedging price risks related to export/import activities, provided the contracts are on a 'stand-alone' basis, meaning the SEZ unit must remain isolated from financial contracts with its parent or subsidiary entities.