After permitting commodity exchanges to launch options trading and allowing category III alternate investment funds to participate in trading, the market regulator could soon allow entry of mutual funds and portfolio management services into the 14-year old commodity derivatives market (CDM), two persons aware of the development confirmed to ET. The approval could come in the next two-three months.
"It's the next logical step in terms of deepening participation," said one of them. "Since both mutual funds and PMS are regulated by Sebi, the decision to allow their participation would be taken in the next two-three months."
