Sebi seeks RBI help to attract corporate participation on comexes

Market regulators wants apex bank to ask lenders to make hedging of commodity price risk mandatory on domestic exchanges

Indian companies have largely stayed away from hedging the price risk of raw materials on domestic exchanges. The Securities and Exchange Board of India (Sebi) has sought help from the Reserve Bank of India (RBI) to bring them on board.

The market regulator, along with members of the Commodity Derivatives Advisory Committee (CDAC), is planning to meet the RBI, which can ask banks to advise Indian corporate borrowers to hedge their commodity price risk on domestic exchanges. The proposal to meet the RBI was made at the CDAC meeting last week.

Mandatory hedging by companies of their commodity risk on