See Regulation 4 - Permissible Foreign Exchange Derivative Contract

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....be undertaken, as may be permitted by the Reserve Bank of India Provided further that transactions that involve the Rupee but are settled by delivery of a foreign currency shall be undertaken only by an authorised dealer or a person not resident in India and such other persons as may be permitted by the Reserve Bank of India, in terms of the directions issued in this regard by the Reserve Bank of India. ii. that such person shall share the details of the exposure with the authorised dealer when called upon to do so by the authorised dealer. 2. A person may enter into an exchange traded currency derivative contract on an exchange recognised under section 4 of the Securities Contract (Regulation) Act, 1956. Contracts involving Rupee shal....

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....lled shall not be re-booked although they can be rolled over at ongoing rates on or before maturity. This restriction shall not apply to contracts covering export transactions which may be cancelled, rebooked or rolled over at on-going rates." 3. Inserted vide Notification No. 104/2003 dated 21-10-2003, w.e.f. 21-10-2003. 4. Inserted vide Notification No.143/2005 dated 19-12-2005, w.e.f. 07-07-2003. 5. Inserted vide Notification No.143/2005 dated 19-12-2005, w.e.f. 07-07-2003. 6. Inserted vide Notification No. 159/2007 dated 17-09-2007, w.e.f. 13-12-2006. 7. Inserted vide Notification No. FEMA 240/2012-RB, dated 25-09-2012, w.e.f. 03-05-2000. 8. Omitted vide Notification No. FEMA 240/2012-RB, dated 25-....

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....a forward contract with an authorised dealer in India to hedge an exposure to exchange risk in respect of a transaction for which sale and/or purchase of foreign exchange is permitted under the Act, or rules or regulations or directions or orders made or issued thereunder, subject to following terms and conditions- 1[(a) the authorised dealer through verification of documentary evidence is satisfied about the genuineness of the underlying exposure or as otherwise permitted by the Reserve Bank from time to time.] (b) the maturity of the hedge does not exceed the maturity of the underlying transaction, (c) the currency of hedge and tenor are left to the choice of the customer, (d) where the exact amount of the underlying transaction i....

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....ted by the Reserve Bank from time to time, enter into a forward contract with an authorised dealer in India to hedge an economic exposure to exchange risk in respect of such transactions as may be prescribed by the Reserve Bank from time to time.] B. Contract other than Forward Contract. 2. (1) A person resident in India who has borrowed foreign exchange in accordance with the provisions of Foreign Exchange Management (Borrowing and Lending in Foreign Exchange) Regulations, 2000, may enter into an Interest rate swap or Currency swap or Coupon Swap or Foreign Currency Option or Interest rate cap or collar (purchases) or Forward Rate Agreement (FRA) contract with an authorised dealer in India or with a branch outside India of an authorise....