SEBI opens up commodity derivatives to banks, insurers, pension funds
SEBI is planning to let banks, insurance companies, and pension funds invest in non-agricultural commodity derivatives—think metals and energy, not just crops.
Announced by SEBI Chairman Tuhin Kanta Pandey on Thursday, these changes are all about making it easier for big institutions (and potentially foreign investors) to join in, which should boost both hedging options and market liquidity.
SEBI also wants to improve access to corporate and municipal bonds.
Why it matters
More participation from major financial players and foreign investors could mean deeper, more stable markets—making it easier for companies to raise money and for investors to find new opportunities.
If you're interested in finance or the future of India's economy, these reforms are about building stronger, safer markets that can help drive growth and protect investors.