SEBI to engage with government to allow banks, pension funds to invest in non-agri markets

SEBI to engage with government to allow banks, pension funds to invest in non-agri markets

The decision was announced at an event organized by the Multi-Commodity Exchange

Tuhin Kanta Pandey, Chairman of the Securities and Exchange Board of India (SEBI), has said that the regulator would ‘engage’ with the government to allow banks, insurance companies and pension funds to invest in non-agriculture commodity derivative markets.

He added that SEBI was also considering a proposal to allow foreign portfolio investors (FPIs) to trade in non-cash settled, non-agricultural commodity derivative contracts.

The SEBI chief was speaking at an event organised by the Multi-Commodity Exchange (MCX). He said, "We will also engage with the government to consider banks, insurance companies and pension funds to trade in these (non-cash, non-agricultural) markets.”

Pandey said that the commodity markets must play an important role in ensuring the security of the country’s rare metals.

By this year end, the market regulator will include commodity-specific brokers in a common reporting mechanism for compliance reports.