On Tuesday, SEBI Chairman Tuhin Kanta Pandey announced plans to increase participation in India’s commodity derivatives market. Speaking at a Multi Commodity Exchange event, Pandey revealed that SEBI would work with the government to expand the market.
SEBI aims to allow banks, insurance companies, and pension funds to trade in commodity derivatives. The regulator also plans to seek approval to let foreign portfolio investors (FPIs) trade in non-agricultural and non-cash settled commodity derivatives, attracting global investors.
Pandey mentioned that SEBI had set up a committee to strengthen the agricultural commodities segment. A new working group will focus on developing the non-agricultural commodity market, including metals.
Ensuring market safety and integrity is SEBI’s top priority. The regulator will focus on real-time margin collection and continuous market monitoring. Pandey emphasized the importance of making commodity markets accessible to institutional investors, like mutual funds, to improve liquidity and facilitate hedging.
SEBI plans to simplify compliance by introducing commodity-specific brokers on a common reporting platform by December 2025. It will also launch awareness programs to attract a wider range of investors.
