FPIs Participation in Commodity Derivatives


FPIs in Commodity Derivatives




SEBI allows foreign portfolio investors to participate in the exchange-traded commodity derivatives.

It enhances the liquidity in the Indian market.

It reduces the price gap.

FPIs are allowed to trade in all non-agricultural derivatives.

They are allowed to participate in the cash settlement contract.

Their participation will bring down the transaction cost in the commodity segment.

Presently, 10000 FPIs are registered in the Indian commodity market, the same will bring liquidity to the Indian ETCDs segment (Exchange Traded Commodity Derivatives).





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