New Delhi, May 8 -- In a move aimed at facilitating foreign investment in derivative instruments, the Reserve Bank of India (RBI) has amended the Foreign Exchange Management Act (FEMA) regulations, easing margin management requirements for trading in permitted derivatives both within and outside India.

Through two separate notifications, the central bank has introduced key changes to streamline derivative trading activities involving foreign participants.

The first notification expands the permission granted to Authorised Dealers (ADs), enabling them to post and collect margin domestically and internationally for permitted derivative contracts entered into with non-resident entities.

This provision extends to derivative contracts betwe...