Overview

• SEBI said it is examining a proposal to permit foreign portfolio investors to trade non-cash settled, non-agricultural commodity derivative contracts.
• The regulator will consult the government on allowing banks, insurance companies and pension funds to participate in commodity trading.
• A committee to deepen agricultural commodities is already in place, and a working group for non-agricultural contracts, including metals, will be formed.
• Commodity-specific brokers are slated to join the Samuhik Prativedan Manch common reporting platform by December 2025, with core safeguards such as real-time margin collection retained.
• MCX shares jumped about 5% intraday following the comments, and FPIs currently trade only in cash-settled or non-deliverable contracts with roughly Rs 15,000 crore in daily volume.