The Securities and Exchange Board of India (Sebi) may soon allow mutual funds (MFs) to trade in commodity derivatives on exchanges, giving retail investors indirect exposure to the commodities market for the first time.
Sebi chairman U.K. Sinha said on Friday that the regulator will amend existing norms within a month or so to allow MFs to invest and trade in commodity derivatives on exchanges.
He told reporters on the sidelines of a conference that low participation of producers and hedgers is a concern for the market regulator, while the launch of new products such as options will need amendments to the Securities Contracts (Regulation) Act or SCRA.
