Good news for foreign portfolio investors, SEBI allows trading in commodity futures markets
The SEBI has allowed only those FPIs to trade who have direct exposure in Indian commodity physical market.
In a good news for foreign portfolio investors (FPIs), Securities and Exchange Board of India (SEBI) on Tuesday allowed them to trade in commodity futures markets.
The market regulator has allowed only those FPIs to trade who have direct exposure in Indian commodity physical market. The FPIs should have a net worth of 5 lakh dollar to be able to trade in the segment.
Anuj Gupta, Deputy Vice President - Research (Commodities and Currencies), Angel Broking Limited, said that the SEBI move will help increase the trading volume in the segment. He said it will not only bring more transparency in the market but will also promote the hedging strategy. Gupta said it is likely that domestic traders may also get interested in hedging and the discovery level of commodities price will also get enhanced.
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