SEBI group to overview non-agricultural derivatives

Markets regulator SEBI is planning to represent a working group to overview the non-agricultural commodity derivatives phase, its chairman Tuhin Kanta Pandey stated on Saturday (December 20, 2025).

He added that the working group can be notified shortly.

Talking on the eleventh Worldwide Conference of the Commodity and Capital Individuals Affiliation of India (CPAI), Mr. Pandey stated SEBI can also be partaking with the Reserve Financial institution of India (RBI) and the Insurance coverage Regulatory and Growth Authority of India (IRDAI) to allow the participation of banks and insurance coverage corporations within the commodity derivatives market.

In keeping with him, enhanced institutional participation will usher in larger liquidity, making the market extra enticing for hedging functions.

“After due session with all stakeholders, we’re going to kind one other working group to overview the non-agricultural commodity spinoff phase. This working group can be notified very shortly,” the SEBI chief stated.

Mr. Pandey stated SEBI has already arrange working teams to recommend measures to deepen the agriculture and commodity derivatives ecosystem. These knowledgeable teams are analyzing, amongst different facets, whether or not the present regulatory framework governing margins, place limits, and supply and settlement mechanisms might be optimised with out compromising market integrity.

He stated the suggestions of those teams would assist the regulator take vital developmental measures.

Past institutional participation, Mr. Pandey highlighted the necessity to tackle taxation-related hurdles. He stated SEBI will proceed its engagement with the federal government to resolve Items and Providers Tax (GST) points confronted by market contributors, significantly these in search of to obtain or ship commodities via alternate platforms.

“There are a number of GST-related challenges that have to be addressed. We must work intently with the GST Council Secretariat and the GST Council to resolve a few of these crucial points to really spur the event of commodity markets,” he stated, including that that is particularly vital for each agricultural and non-agricultural segments, together with gold.

Elaborating on the gold ecosystem, Mr. Pandey famous that Indian markets already provide a spread of regulated gold merchandise via commodity derivatives, gold exchange-traded funds (ETFs) and digital gold receipts (EGRs), all of which guarantee investor safety.

He stated EGRs had been envisioned to create a regulated marketplace for gold buying and selling and place India as a worldwide worth discovery centre for the dear metallic.

Nevertheless, he acknowledged that the EGR framework has not gained the specified traction to date, and requires a overview.

“I feel there are GST challenges round it,” Mr. Pandey stated, urging trade contributors to teach traders and encourage them to deal solely in regulated gold merchandise.