SEBI on foreign entity participation in commodities derivatives market
October 1, 2018
SEBI has, by its circular dated 9 October 2018 , permitted eligible foreign entities (EFEs) having actual exposure to the Indian commodity markets to participate in the commodity derivatives segment of recognized stock exchanges for hedging their exposure. The regulatory framework for such entities has been detailed in an Annexure to this circular.
SAM & Co comment
This initiative by SEBI will promote wider participation in the commodity market thereby ensuring increase in liquidity. Further, commodities that are Indian centric and are not traded in other international exchanges may be the most befitted.