SEBI mulls letting FPIs trade bullion derivatives without physical delivery
SEBI is thinking about letting foreign portfolio investors (FPIs) trade in bullion derivatives (basically, gold and silver futures) without having to deal with actual metal deliveries.
Right now, FPIs can only trade things like oil and gas contracts that settle in cash, while bullion contracts mean you have to take delivery of the metal at the end.
Experts say trading volumes would rise
If SEBI gives the green light, FPIs could roll over or close their positions before any physical handover happens.
Naveen Mathur from Anand Rathi says this move would open up the market for global players without all the hassle.
Experts think it'll boost trading volumes, make prices fairer for everyone (from hedgers to speculators), and add some much-needed energy to India's bullion market.
The final call from SEBI is still pending, but exchanges like MCX (which already dominates gold trading) could see even more buzz if this goes through.