What is Sebi doing to improve commodity markets?

Sebi is working on increasing institutional participation, reviewing margins and position limits, and resolving GST issues to deepen commodity markets.

How will Sebi encourage more institutional investors in commodities?

Sebi is engaging with the RBI and Irdai to enable participation from banks and insurance companies in the commodity derivatives segment.

Are there changes planned for agri-commodity derivatives by Sebi?

Yes, Sebi has set up working groups to review and optimize the regulatory framework for agri-commodity derivatives, including margins and settlement.

Home / Business and Economy / Sebi Eyes Deeper Commodity Markets

Sebi Eyes Deeper Commodity Markets

20 Dec, 2025

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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.