SEBI Proposes Allowing Banks and Pension Funds to Trade Commodities
India’s securities regulator SEBI has initiated discussions with the government to enable banks and pension funds to participate directly in commodity markets. If approved, this change could significantly boost liquidity in commodities like metals and energy, and provide institutional investors new hedging tools. The proposed reform comes as SEBI also considers permitting foreign investors to engage in non-agricultural, non-cash settled derivatives. Markets responded positively, with shares of MCX rising on the news, as investors anticipate more depth and broader participation in commodities trading.
positive
29 days ago
SEBI Proposes Allowing Banks and Pension Funds to Trade Commodities
India’s securities regulator SEBI has initiated discussions with the government to enable banks and pension funds to participate directly in commodity markets. If approved, this change could significantly boost liquidity in commodities like metals and energy, and provide institutional investors new hedging tools. The proposed reform comes as SEBI also considers permitting foreign investors to engage in non-agricultural, non-cash settled derivatives. Markets responded positively, with shares of MCX rising on the news, as investors anticipate more depth and broader participation in commodities trading.
positive
SEBI Proposes Allowing Banks and Pension Funds to Trade Commodities
29 days ago
1 min read
83 words
SEBI considering reforms to allow banks/pension funds to trade commodities; MCX jumps on expectations.
India’s securities regulator SEBI has initiated discussions with the government to enable banks and pension funds to participate directly in commodity markets. If approved, this change could significantly boost liquidity in commodities like metals and energy, and provide institutional investors new hedging tools. The proposed reform comes as SEBI also considers permitting foreign investors to engage in non-agricultural, non-cash settled derivatives. Markets responded positively, with shares of MCX rising on the news, as investors anticipate more depth and broader participation in commodities trading.
India’s securities regulator SEBI has initiated discussions with the government to enable banks and pension funds to participate directly in commodity markets. If approved, this change could significantly boost liquidity in commodities like metals and energy, and provide institutional investors new hedging tools. The proposed reform comes as SEBI also considers permitting foreign investors to engage in non-agricultural, non-cash settled derivatives. Markets responded positively, with shares of MCX rising on the news, as investors anticipate more depth and broader participation in commodities trading.