InvestorQ : What does SEBI allowing FPIs to participate in commodity derivatives really mean?
manisha Kolvenkar made post

What does SEBI allowing FPIs to participate in commodity derivatives really mean?

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Crowny Pinto answered.
2 months ago
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Let me clarify that FPIs can already participate in the commodity derivatives market but only subject to having an underlying exposure in the commodity. Now SEBI has done away with that requirement. Now, FPIs can participate in the exchange-traded commodity derivatives segment even without underlying; purely for trading. FPIs would only be allowed to participate in cash settled non-agricultural commodity derivatives only. Normally, the presence of institutional investors not only widens and deepens the market but also tends to broaden the overall commodity derivatives market.

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