Sebi allows foreign investors to trade in commodity derivatives

Sep 30, 2022

The move is aimed at further increasing depth and liquidity in commodity derivative markets.

The Securities and Exchange Board of India (Sebi) on Thursday allowed foreign investors to participate in Indian exchange-traded commodity derivatives (ETCDs) through the FPI route, subject to conditions.

FPIs will be allowed to participate in cash settled non-agricultural commodity derivative contracts and indices comprising such non-agricultural commodities, the regulator said on Thursday.

The move is aimed at further increasing depth and liquidity in commodity derivative markets. “Enhanced liquidity can gradually enable the Indian commodity derivative market to serve as a global benchmark for various commodities, thereby shifting India from the role of a price taker to a price setter,” the market regulator had said in its consultation paper earlier this year.

[The Indian Express]