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Sebi Eyes Deeper Commodity Markets
20 Dec
Summary
- Sebi is developing commodity markets with focus on institutional participation.
- Working groups are reviewing margins, position limits, and settlement mechanisms.
- Plans include extending reporting portal and unifying investor protection funds.
The Securities and Exchange Board of India (Sebi) is actively working on initiatives to deepen commodity markets, with a particular emphasis on increasing institutional investor involvement. Chairman Tuhin Kanta Pandey announced that working groups have been formed to suggest improvements for the agri-commodity derivatives ecosystem. These groups are examining regulatory aspects like margins, position limits, and settlement systems.
Sebi is also collaborating with the RBI and Irdai to encourage participation from banks and insurance companies. This move is expected to boost market liquidity, making it more attractive for hedging purposes. Additionally, efforts are underway to resolve Goods and Services Tax (GST) related issues for market participants.
Further reforms include extending the common reporting portal to commodity-only brokers and considering a single investor protection fund for all exchange-traded products. Investor awareness programs for farmers and hedgers are also a priority, alongside a review of the electronic gold receipts framework.
