Hedge funds may be allowed in non-farm commodity derivatives initially

Globally, hedge funds are market movers in commodities with an exposure 10 times that in equities

The Securities and Exchange Board of India (Sebi) has proposed to allow category-3 Alternative Investment Funds, typically known as hedge funds, in commodity derivatives. This is on a recommendation by its advisory panel on the segment.
 
Those for it say this would bring more liquidity in the segment. The aim is to bring institutional investors into commodity derivatives; initially, though, this is proposed only for non-agricultural commodities. 
 
"Globally, hedge funds' play in commodities is 10 times bigger than in equity. In India, they will be big volume providers. We can see several big banks, local and foreign, starting