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    <description>Regulation 2 defines margin as collateral posted or collected between derivative-contract parties to cover credit risk. Permitted derivative contracts include foreign exchange, rupee interest rate and credit derivative contracts, together with other contracts specified by the Reserve Bank. Derivative has the meaning assigned under regulations governing permissible capital account transactions, while undefined expressions carry their meanings under the Foreign Exchange Management Act, 1999. The credit derivative reference was updated to align with the Reserve Bank of India Credit Derivatives Directions, 2022.</description>
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