Sebi will “engage” with the federal government to enable banks, insurance coverage firms and pension funds to invest in non-agriculture commodity spinoff markets, its chairman Tuhin Kanta Pandey stated on Wednesday (September 17, 2025).
He stated the capital markets regulator can also be taking a look at a proposal to enable international portfolio traders to commerce in non-cash settled, non-agricultural commodity spinoff contracts.
“We will also engage with the government to consider banks, insurance companies and pension funds to trade in these (non-cash, non-agricultural) markets,” Mr. Pandey stated, whereas talking on the occasion organised by MCX.
By December-end, Sebi will embrace commodity-specific brokers in a typical reporting mechanism for compliance studies, Mr. Pandey identified.
Stating that commodity spinoff markets play a vital position for the financial system, Mr. Pandey stated India aspires to be the “price-setter” as a substitute of being a “price taker” on the international degree.
There is a necessity to take a look at how to broaden the acceptance of Indian benchmarks at dwelling and overseas, he stated, stressing that in unstable instances like the present one, the exchanges can act as a great instrument of value insurance coverage and assist shield revenue margins.
The profession bureaucrat-turned-securities regulator particularly identified that the current doubling of tariffs on aluminium and copper imports by the US “directly affects” India’s export panorama.
“In such a volatile environment, a robust derivatives market provides a powerful shield, allowing Indian producers and consumers to hedge against global price shocks,” Mr. Pandey stated.
He stated the market turns into very important in the case of essential minerals like lithium, cobalt, nickel and uncommon earth components, that are constructing blocks of inexperienced vitality and posed a problem.
“What can our markets do as India pursues its goal of self-reliance in critical minerals? Can we develop financial instruments that help finance and de-risk the exploration and mining of these vital resources?” Affirming that Sebi will proceed to strengthen the integrity and security of commodity markets, Mr. Pandey underlined that real-time margin assortment and steady monitoring are “non-negotiables” for the regulator.
Strengthening India’s commodity markets is “high” on Sebi’s regulatory agenda, he stated, itemizing out some measures in this regard.
It has already constituted a committee to suggest measures for deepening the agriculture commodity section, Mr. Pandey stated, including that the watchdog may even represent a working group for creating the non-agricultural commodity house, together with metals.
