Sebi board approves FPI participation

Sebi's board approved a proposal allowing foreign portfolio investors to participate in physically settled non-agricultural commodity derivative contracts subject to safeguards.

Sebi examines non-agri position limits

Sebi chairman Tuhin Kanta Pandey said the regulator is examining position limits for non-agricultural contracts to improve liquidity and market depth without weakening risk controls.

Phased approach for contracts

Pandey noted physical settlement from the outset can impede market development in agricultural commodities, so a phased approach allows contracts to mature before physical settlement becomes mandatory.

Technology for market needs

Sebi aims for technology to serve commodity market needs including producers, commercial users, farmers, processors, and physical hedgers while preserving fair access and market integrity.

Project Jagrook awareness

Sebi will strengthen Project Jagrook efforts to spread awareness about commodity derivatives among farmers, FPOs, MSMEs, hedgers, and other market users.

“Access without understanding is not inclusion”

Trust and market integrity

Pandey stressed that trust and market integrity must not be compromised while improving cash markets, securities borrowing, and efficient hedging to strengthen price discovery.