MCX allows FPIs' participation in these particular segments

The Metal and Energy Exchange (MCX) today issued a circular for the participation of foreign portfolio investors (FPIs). The circular says the MCX allows the participation of FPIs other than individuals, family offices, and corporates, in eligible cash-settled non-agricultural commodity derivatives contracts.    

The circular reads, "In terms of provisions of the Rules, Bye-Laws and Regulations of Multi Commodity Exchange and in continuation to MCX circular no MCX/FIM/560/2022 dated September 29, 2022 regarding 'Participation of SEBI registered Foreign Portfolio Investors (FPIs) in Exchange Traded Commodity Derivatives in India'

"To begin with, the Exchange allows participation of Foreign Portfolio Investor(s) (FPIs) other than Individual, family offices and Corporates, in eligible cash settled non-agricultural commodity derivatives contracts and indices comprising such non-agricultural commodities."

The circular revealed that the allowable position limits for the aforementioned FPIs category will be the same as the applicable client-level position limits of the respective eligible cash settled contracts, subject to all rules, regulations issued by SEBI and the Exchange, from time to time.

The MCX also clarified that the participation of aforementioned FPIs shall be subject to compliance with the provisions of SEBI (Foreign Portfolio Investors) Regulation, 2019, SEBI (Custodian) Regulations, 1996 and other applicable SEBI circulars on ETCDs.