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MUMBAI: Sebi on Wednesday allowed overseas portfolio buyers (FPIs) to take part within the nation’s commodities derivatives markets. However the markets regulator put in riders that these might be in non-agricultural commodities and their contracts ought to solely be cash-settled. Sebi additionally discontinued the Eligible Overseas Entity (EFE) route by way of which overseas entities having publicity to shares of bodily commodities in India may hedge the identical by shopping for commodities derivatives contracts.
The regulatory determination, taken in Wednesday’s board assembly, means FPIs will have the ability to commerce in futures & choices (F&O) contracts on non-agri commodities like gold, silver, pure fuel, oil and several other different metals. F&O contracts on these commodities are traded on the MCX, which can also be listed on BSE and NSE. Amongst agri commodities, at present contracts on guar and kapas (cotton) are traded on the NCDEX.
The choice to settle all contracts in money ensures that when FPIs settle their trades, they won’t have publicity to any commodities within the bodily kind. In accordance with Motilal Oswal Monetary Providers head (commodities & currencies) Kishore Narne, although the FPIs’ participation could be restricted, it could be a small step in direction of increasing the attain of India’s markets.
The regulatory determination, taken in Wednesday’s board assembly, means FPIs will have the ability to commerce in futures & choices (F&O) contracts on non-agri commodities like gold, silver, pure fuel, oil and several other different metals. F&O contracts on these commodities are traded on the MCX, which can also be listed on BSE and NSE. Amongst agri commodities, at present contracts on guar and kapas (cotton) are traded on the NCDEX.
The choice to settle all contracts in money ensures that when FPIs settle their trades, they won’t have publicity to any commodities within the bodily kind. In accordance with Motilal Oswal Monetary Providers head (commodities & currencies) Kishore Narne, although the FPIs’ participation could be restricted, it could be a small step in direction of increasing the attain of India’s markets.
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