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Perspective on Sebi's decision to allow FPIs to trade in Exchange Traded Commodity derivatives market by Mr. Kishore Narne, Head - Commodities and Currencies, MOFSL.

“We welcome the decision of SEBI to allow foreign entities to participate in Indian Exchange Traded Commodity Derivative (ETCD) market, through FPI route. Though they limited the participation to only non-agriculture and cash settled contracts for now, it may be a small step towards expanding the reach of our markets. As India grows as an economic behemoth it is important to integrate our commodity markets with the global markets, so this step opens up the gates for free flow of capital and ease of trading by foreigners which will reduce pricing gaps and would help in enhancing the liquidity in our markets.”

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