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Foreign Entities Allowed By Sebi To Country’s Commodity Derivatives Market




Foreign entities allowed by Sebi to country’s commodity derivatives market. As of now, foreign entities are not allowed to straightforwardly take part in the commodity derivatives market, regardless of whether they import/send out different products from/to the nation.

According to the controller, such elements by uprightness of their real presentation to the different commodities in Indian market are important partners in the esteem chain of such commodities, and are additionally presented to value vulnerability of Indian product markets. Thusly, these elements ought to be empowered to fence s value chance in the nation’s item derivatives market.

Under the standards, such EFEs will have real introduction to Indian physical ware markets. The EFE is inhabitant in a nation, whose securities or item subsidiaries advertise controller is an of a reciprocal agreement with Sebi. The base total assets prerequisite for such EFE will be $500,000.

Sebi said in a statement that it has ‘decided to permit foreign entities having actual exposure to Indian commodity markets to participate in the commodity derivative segment of recognised stock exchanges for hedging their exposure.’

“If such EFEs are also registered with Sebi as Foreign Portfolio Investors or Foreign Venture Capital Investors then they are permitted to participate in commodity derivatives markets as EFE provided that they have actual exposure to Indian physical commodity markets and subject to conditions that there is clear segregation of funds or securities or commodities under the respective registrations,” the company said in a statement.


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