Sebi may allow FPIs in commodity derivatives market: Sinha

Taking charge of regulating the commodities derivatives market, Sebi Chairman U K Sinha on Monday said it would look at allowing foreign portfolio investors and banks in this market in next few months. With the Forward Markets Commission (FMC) formally getting merged with Sebi from today, Sinha said the first priority would be to develop trust in the commodities market and then the focus would be on developing the market. 

The Sebi chief said that new participants like banks and FPIs (Foreign Portfolio Investors) as well as more products would be allowed. “These development measures will happen in few months. Right now, our focus would be on placing the regulators environment,” he said at an event to mark the merger of commodities markets regulator FMC with the Securities and Exchange Board of India (Sebi). 

Further, Sinha said Sebi would focus on how prices and benchmark rates are fixed in commodity markets as well as look at the possibility of having products like options and futures.