(Reuters) – The chairman of India’s markets regulator said on Wednesday it will engage with the government to enable banks and pension funds to trade commodities as part of the regulator’s agenda to strengthen commodities markets.
The Securities and Exchange Board is considering allowing Foreign Portfolio Investors (FPI) to trade in non-cash settled, non-agricultural derivatives contracts, Chair Tuhin Kanta Pandey said.
The proposals are part of SEBI’s agenda to strengthen commodities markets and enhanced institutional participation will bring in increased liquidity, Pandey said.
Shares of Multi Commodity Exchange of India rose 4.2% after the news.
(Reporting by Jayshree P Upadhyay and Abinaya Vijayaraghavan; Editing by Ronojoy Mazumdar)
