Sebi permits FPIs to participate in exchange-traded commodity derivatives

Capital markets regulator Sebi on Thursday allowed Foreign Portfolio Investors (FPIs) to participate in the exchange-traded commodity derivatives segment, a move that will further increase depth and liquidity in the market.
 

The new guidelines, came after Sebi's board approved a proposal in this regard in June, will come into force with immediate effect.
 

The regulator has already allowed institutional investors such as Category III Alternative Investment Funds (AIFs), Portfolio Management Services and Mutual Funds to participate in the Exchange Traded Currency Derivatives (ETCD) market. In a circular, the Securities and Exchange Board of India (Sebi) said it has decided to