Sebi permits overseas buyers to commerce in commodity derivatives

The Securities and Exchange Board of India (Sebi) on Thursday allowed overseas buyers to take part in Indian exchange-traded commodity derivatives (ETCDs) by means of the FPI route, topic to situations.

FPIs might be allowed to take part in money settled non-agricultural commodity by-product contracts and indices comprising such non-agricultural commodities, the regulator mentioned on Thursday.

The transfer is aimed toward additional growing depth and liquidity in commodity by-product 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 mentioned in its session paper earlier this yr. FE