Expanding Horizons: Sebi's Vision for Commodity Derivatives

Sebi plans to collaborate with the government to permit banks, insurance firms, and pension funds to invest in non-agricultural commodity derivatives. Sebi also aims to allow foreign investors in these markets and introduce commodity-specific brokers in compliance reporting by December 2025. The focus is on enhancing rare metals security.

Sebi Chairman Tuhin Kanta Pandey revealed plans to collaborate with the government to expand investment opportunities in non-agricultural commodity derivative markets. The goal is to permit banks, insurance companies, and pension funds to participate in these markets.

Sebi is also evaluating a proposal to welcome foreign portfolio investors to trade in non-cash settled, non-agricultural commodity derivatives. This strategic initiative aims to enhance liquidity and global participation.

By December 2025, a unified compliance reporting mechanism, including commodity-specific brokers, will be implemented. Additionally, the commodity markets are poised to strengthen rare metals security for the nation.

(With inputs from agencies.)