Mumbai, April 1 -- India's central bank further tightened its forex curbs on Wednesday by targeting the rebooking of cancelled forex derivative contracts and tightening norms around related-party transactions.

If a company or trader cancels a dollar hedge, they can no longer re-enter the same trade to benefit from price movements, limiting their ability to take directional bets under the guise of hedging.

Separately, banks have been barred from undertaking foreign exchange derivative contracts with related parties, as defined under the Indian Accounting Standard (Ind AS) 2.

Wednesday's moves come after the Reserve Bank of India (RBI) first capped banks' net open positions (NOP) in the domestic market at $100 million at the end of each ...