Mumbai, September 26, 2017

Sebi wants large institutional investors to participate in commodity platforms in India

Months after allowing Category-III hedge funds to trade in commodity futures, the Securities and Exchange Board of India (Sebi) is all set to grant mutual funds and portfolio management services (PMS) permission to participate in the commodity derivatives market.

Speaking on the sidelines of a seminar organised by Ficci, Sebi Executive Director S K Mohanty said, "We had several rounds of discussions with various stakeholders in the commodity value chain. We want large institutional investors that are currently trading in global exchanges to participate in commodity platforms in India. For which, enabling provisions are required. While buy side participants are ready, sell side of similar size is needed for institutional players to bring in volume in local exchanges. Thus, we are in advanced stage of discussions to allow mutual funds and PMS to participate in commodity futures market."

Mohanty, however, didn't give any timeframe for the approval of such provisions.

On the occasion, Thomson Reuters launched India-specific indices in association with India's leading commodity exchange, the Multi Commodity Exchange of India (MCX).

[The Business Standard]