Are PMS allowed to actively trade and short sell derivatives?

I am intrigued to know is an entity can make active trades in derivatives with a PMS license and if so, are there any restrictions on Short Selling?

Portfolio Manager is allowed to invest in the Derivatives Segment only to the extent of the value of the portfolio.
This is for the purpose of hedging and portfolio balancing.

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does that mean :
e.g :
if the PMS is holding 250 shares of TCS ; then the PMS is not allowed to longbuy BUT allowed to shortsell only the 1 lot of the TCS in future derivative !

am I right in my understanding ?

Pls clarify