Sebi allows foreign entities to hedge commodity exposure via derivatives

Capital markets regulator Securities and Exchange Board of India (Sebi) on Tuesday allowed foreign entities to participate in the commodity derivatives segment of stock exchanges for hedging their exposure.

In a letter addressed to the managing directors and chief executive officers all recognised stock exchanges and clearing corporations with commodity derivatives segment, Sebi said: “Currently, foreign entities are not permitted to directly participate in the Indian commodity derivatives market, even if they import/export various commodities from/to India. Such entities by virtue of their actual exposure to the various commodities in Indian market, are valuable stakeholders in the value chain of such