The regulator will deal with the government to allow banks, insurers and pension funds to trade these markets. It also investigates a proposal to enable foreign investors in the portfolio to act non-agricultural raw material-defined contracts, he said. “Strengthening India’s raw material markets is high on Sebi’s regulatory agenda,” said Pandey during an event organized by MCX. “Improved institutional participation will result in higher liquidity, making the market more attractive for cover.”
Currently, large companies, traders, importers and SMEs (small and medium -sized companies) are actively participating in the raw material market. Institutional investors such as investment funds and alternative investment funds are increasingly recognizing metals such as an asset class that improves the risk-corrected return for investors, he said.
The supervisor has already formed a committee to recommend measures to deepen the segment of agricultural products and will also form a working group for developing the non-agricultural raw material space, including metals, according to Pandey.
By December Sebi will include raw material -specific brokers in the Samuhik Prativededan Manch, a joint reporting mechanism for compliance reports.
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