SEBI may allow foreign investors in commodity derivatives
SEBI is looking to open up non-agricultural commodity derivatives trading to bigger institutions—think foreign investors, banks, insurers, and pension funds.
The idea is to deepen and widen participation, boost liquidity, improve price discovery, and make the market more useful for hedging.
SEBI's chief, Tuhin Kanta Pandey, mentioned they're also considering letting foreign investors trade in contracts that aren't just settled with cash.
What this means for producers and users
If this goes through, it could mean smoother trading and better price protection for producers and users—especially as prices for things like gold, silver, and copper keep jumping due to global demand.
SEBI also plans to roll out a single reporting platform for brokers by December 2025 to simplify compliance.
There are still some hoops to jump through (like getting RBI approval), but if it works out, India's commodity markets could become much more dynamic—and maybe even more accessible down the line.