Foreign exchange hedging: expanded permission for residents and non residents to use forwards and cross currency contracts for specified exposures. Residents in India may, subject to Reserve Bank of India terms and conditions, enter into forward contracts with authorised dealers to hedge exchange risk on transactions denominated in foreign currency but settled in Indian rupees. Non resident Indians may, under RBI conditions, enter into cross currency forwards (excluding the rupee) to convert FCNR(B) balances between permitted foreign currencies. Persons resident outside India may, subject to RBI conditions, enter forward sale contracts to hedge currency risk on proposed foreign direct investment, and non resident investors may take forward cover including the rupee to hedge dividends where the rate is Board approved.