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SEBI clears reforms expanding FPI access to commodity derivatives

The regulator also approved changes to portfolio management rules, including allowing discretionary and non-discretionary PMS to invest in foreign securities under India’s LRS framework.

Reported · Written up by our desk · Trade & Tariffs

India’s market regulator, SEBI, cleared a package of reforms on 24 September aimed at deepening market participation and simplifying parts of its rulebook, LiveMint Markets reports.

The SEBI board approved expanded access for foreign portfolio investors to commodity derivatives, including non-agricultural commodity index derivatives and non-agricultural commodity derivatives that are not cash-settled.

For physically settled non-agricultural commodity contracts, FPIs will need to close out positions three days before expiry, ahead of the start of a tender or staggered delivery period.

SEBI also approved an overhaul of portfolio management rules, including permitting discretionary and non-discretionary portfolio management services to invest in foreign securities under the RBI’s Liberalised Remittance Scheme, and it allowed depository receipts against REIT and InvIT units.

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