The Securities and Exchange Board of India is considering a proposal to allow foreign portfolio investors to trade in non-cash settled, non-agricultural commodity derivative contracts.
Sebi Proposes Investment In Non-Agriculture Commodity Derivative Markets For Pension Funds, Banks, And Insurance Companies
Sebi chairman Tuhin Kanta Pandey emphasised the role commodity markets have to play in ensuring rare metals security for the country.
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Sebi will "engage" with the government to allow banks, insurance companies and pension funds to invest in non-agriculture commodity derivative markets, chairman Tuhin Kanta Pandey said on Wednesday.
He said the capital markets regulator is also looking at a proposal to allow foreign portfolio investors to trade in non-cash settled, non-agricultural commodity derivative contracts.
"We will also engage with the government to consider banks, insurance companies and pension funds to trade in these (non-cash, non-agricultural) markets," Pandey said, while speaking at the event organised by MCX.
By December 2025 end, Sebi will include commodity-specific brokers in a common reporting mechanism for compliance reports. Pandey also said that the commodity markets have to play an important role in ensuring rare metals security for the country.
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