Foreign portfolio investors will be allowed to participate in selected non-agricultural commodity derivatives contracts under a new framework approved by the Indian regulator.
The Securities and Exchange Board of India (Sebi) has approved the participation of foreign portfolio investors (FPIs) in certain exchange traded commodity derivatives (ETCDs), a move aimed at increasing liquidity in the commodity derivatives market. FPIs will be required to exit their positions before any delivery obligation arises Under the framework, FPIs will be permitted to trade in non-agricultural index derivatives contracts, regardless of whether the underlying contracts are cash set