Sebi allows foreign entities in commodity derivatives segment, with a rider

Minimum networth for such entities has been fixed at $0.5 million; these will not be allowed in sensitive commodities

Nearly five months after issuing a consultation paper on the subject, the Securities and Exchange Board of India (Sebi) said it was allowing eligible foreign entities (EFEs) to trade in commodity futures here.

However, there is a minimum net worth requirement for such EFEs, at $500,000. Such an EFE may approach an authorised stock broker  with a minimum net worth of Rs 250 million for registration. The regulator has authorised the exchanges to frame any other criteria, too, for entry of EFEs into commodity derivatives.

It has also directed exchanges and authorised stock brokers to monitor the hedge position of any such