5 months ago
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Markets regulator SEBI is readying to represent a moving radical to reappraisal the non-agricultural commodity derivatives segment, its president Tuhin Kanta Pandey said connected Saturday (December 20, 2025).
He added that the moving radical volition beryllium notified shortly.
Speaking astatine the 11th International Convention of the Commodity and Capital Participants Association of India (CPAI), Mr. Pandey said SEBI is besides engaging with the Reserve Bank of India (RBI) and the Insurance Regulatory and Development Authority of India (IRDAI) to alteration the information of banks and security companies successful the commodity derivatives market.
According to him, enhanced organization information volition bring successful higher liquidity, making the marketplace much charismatic for hedging purposes.
“After owed consultation with each stakeholders, we are going to signifier different moving radical to reappraisal the non-agricultural commodity derivative segment. This moving radical volition beryllium notified precise shortly,” the SEBI main said.
Mr. Pandey said SEBI has already acceptable up moving groups to suggest measures to deepen the agriculture and commodity derivatives ecosystem. These adept groups are examining, among different aspects, whether the existing regulatory model governing margins, presumption limits, and transportation and colony mechanisms tin beryllium optimised without compromising marketplace integrity.
He said the recommendations of these groups would assistance the regulator instrumentality indispensable developmental measures.
Beyond organization participation, Mr. Pandey highlighted the request to code taxation-related hurdles. He said SEBI volition proceed its engagement with the authorities to resoluteness Goods and Services Tax (GST) issues faced by marketplace participants, peculiarly those seeking to person oregon present commodities done speech platforms.
"There are respective GST-related challenges that request to beryllium addressed. We volition person to enactment intimately with the GST Council Secretariat and the GST Council to resoluteness immoderate of these captious issues to genuinely spur the improvement of commodity markets," helium said, adding that this is particularly important for some cultivation and non-agricultural segments, including gold.
Elaborating connected the golden ecosystem, Mr. Pandey noted that Indian markets already connection a scope of regulated golden products done commodity derivatives, golden exchange-traded funds (ETFs) and physics golden receipts (EGRs), each of which guarantee capitalist protection.
He said EGRs were envisioned to make a regulated marketplace for golden trading and presumption India arsenic a planetary terms find centre for the precious metal.
However, helium acknowledged that the EGR model has not gained the desired traction truthful far, and requires a review.
“I deliberation determination are GST challenges astir it,” Mr. Pandey said, urging manufacture participants to amended investors and promote them to woody lone successful regulated golden products.
