SEBI Says Regulators Oppose Commodity Derivative Access
SEBI Chairman Tuhin Kanta Pandey said the RBI and IRDAI are not inclined to allow bank and insurance investment in commodities. MCX shares fell on the news.
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India regulators are not inclined to allow banks and insurers to invest in commodity derivatives, causing MULTI COMMODITY EXCH INDIA shares to fall 3.4%. The announcement reverses a September commitment by the Securities and Exchange Board of India (SEBI) to engage with the government to enable banks and pension funds to trade commodities as part of its agenda to strengthen commodities markets. Restricted institutional access limits liquidity and depth in the Indian commodities market for global and domestic investors.
