SEBI outlines new reforms for commodity derivatives market; MCX rises
The move could expand institutional participation and improve liquidity
Following the Securities and Exchange Board of India (SEBI) Chairman Tuhin Kanta Pandey outlining new reforms for the commodity derivatives market, the Multi-Commodity Exchange of India (MCX) jumped 3.66 percent to Rs.7930.85.
Pandey was speaking at an event hosted by MCX and added that SEBI was in talks with the government to permit banks, insurers and pension funds to trade in commodities.
Meanwhile, the market regulator is also examining a proposal to allow foreign portfolio investors (FPIs) to trade in non-cash settled, non-agricultural contracts.
Currently, FPIs are restricted to cash-settled products such as crude oil and natural gas. However, analysts feel that broader access to bullion and base metals could boost activity on domestic exchanges.