SEBI proposes wider FPI access to commodity derivatives
FPIs are currently allowed to participate only in cash-settled non-agricultural commodity derivatives and indices comprising such commodities
The Securities and Exchange Board of India (SEBI) has proposed expanding access for foreign portfolio investors (FPIs) to trade in exchange-traded commodity derivatives. This includes allowing FPIs to trade physically settled non-agricultural commodity contracts, as opposed to their current participation which is limited to cash-settled non-agricultural commodity derivatives and indices.
SEBI's proposal aims to broaden the participant base, increase liquidity and market depth, improve price discovery, and strengthen convergence between derivatives and physical markets.
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