The Securities and Alternate Board of India (Sebi) on Thursday allowed international traders to take part in Indian exchange-traded commodity derivatives (ETCDs) by the FPI route, topic to situations.
FPIs can be allowed to take part in money settled non-agricultural commodity by-product contracts and indices comprising such non-agricultural commodities, the regulator stated on Thursday.
The transfer is aimed toward additional growing depth and liquidity in commodity by-product markets. “Enhanced liquidity can regularly allow the Indian commodity by-product market to function a worldwide benchmark for varied commodities, thereby shifting India from the position of a worth taker to a worth setter,” the market regulator had stated in its session paper earlier this yr. FE