India Eases Foreign Access to Commodity Derivatives

India has permitted foreign portfolio investors to trade physically settled non-farm commodity contracts to boost market liquidity. Regulators also enabled local portfolio managers to handle global assets.

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FILE PHOTO: Securities and Exchange Board of India (SEBI) headquarters is seen through a wire fencing, in Mumbai, India, September 12, 2025. REUTERS/Francis Mascarenhas/File Photo

India permitted foreign investors to trade in physically settled non-farm commodity contracts on Thursday afternoon, widening market access to boost liquidity. The regulatory update aligns the nation's derivatives framework with global trading standards. The reform aims to attract overseas capital and scale up participation in key commodity markets.

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