SEBI is considering allowing banks and pension funds to participate in India’s commodity markets.
The move could deepen liquidity in segments like energy, metals, and industrial raw materials.
So far, institutional participation in these contracts has been highly restricted.
Broader access may bring efficiency and tighter spreads, reducing volatility for r
etail players.
Reports of the proposal boosted shares of MCX, which jumped more than 4% intraday.
FPIs may also be allowed to trade in certain commodity derivatives under new norms
.
Market experts believe the reforms will bring commodities trading closer to global standards.
At the same time, concerns remain about risk management and settlement frameworks.
Regulators will need to ensure strict margin discipline to protect system stabilit
y.
If approved, this could mark one of the biggest reforms in India’s commodity ecosyst
em.