Sebi has announced plans to constitute a working group to boost trade in non-agricultural commodity derivatives, including metals, as part of a broader strategy to deepen participation and liquidity in the segment.
Sebi chairman Tuhin Kanta Pandey on Tuesday said the regulator would adopt a multipronged approach, including real-time margin collections, expansion of ancillary services such as advisory, intermediation, warehousing and logistics, and steps to widen market participation.
“We have already constituted a committee to recommend measures for deepening the agricultural commodities segment. We will also constitute a working group for developing the non-agricultural commodity space, including metals,” Pandey said.
The regulator will also engage with the government to allow banks, insurance companies, pension funds and foreign portfolio investors (FPIs) to participate in these markets. Currently, FPIs are permitted only in cash-settled non-agricultural contracts. Sebi is examining a proposal to extend this access to non-cash settled contracts as well.
“Enhanced institutional participation will bring in higher liquidity, making the market more attractive for hedging,” Pandey said, adding that such reforms would strengthen India’s commodity markets at a time when global trade volatility remains high.
Shares of Multi Commodity Exchange of India (MCX) rose 3.51 per cent at the BSE on Wednesday, reflecting investor optimism following Sebi’s announcements.
Discussions with the government are also underway to resolve goods and services tax (GST) issues for participants opting for physical delivery through exchanges.
Highlighting the importance of critical minerals, Pandey noted that the recently launched deliverable nickel contract on MCX was a key step, given India’s heavy reliance on nickel imports.
He also stressed the strategic role of the markets in supporting the National Critical Mineral Mission, which seeks to secure domestic supply chains for resources like lithium, cobalt and rare earths.
Pandey flagged concerns over the recent doubling of US tariffs on aluminium and copper imports, noting that a robust derivatives market would provide Indian producers and consumers with a vital hedging tool against global price shocks.
RBI review cell
The RBI on Wednesday announced the formation of a six-member Regulatory Review Cell (RRC) to undertake a systematic review of its regulations every five to seven years.
The cell will be housed in the central bank’s Department of Regulation from October 1, 2025, and will be chaired by SBI managing director Rana Ashutosh Kumar Singh. Members will include representatives from banks, non-banking financial companies (NBFCs) and insurance firms.
The move is aimed at streamlining the regulatory framework, enhancing efficiency, and ensuring that RBI rules remain relevant to evolving market conditions.
Bima Sugam
The Insurance Regulatory and Development Authority of India (IRDAI) has announced the launch of the official website for Bima Sugam, the upcoming digital insurance marketplace.
The platform, operated by Bima Sugam India Federation, will progressively go live with real transactions in the coming months through a phased rollout of features.
“This initiative will empower policyholders, deepen insurance penetration and ensure transparency and fairness across the value chain,” said IRDAI chairman Ajay Seth.
Bima Sugam aims to provide a one-stop marketplace for life, health, and general insurance products, enabling policyholders to compare, purchase, renew, and manage policies digitally with greater ease.