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SEBI Proposes Wider FPI Access to Commodities
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Securities and Exchange Board of Indiafinancial_regulationcommoditiesinternational_finance

SEBI Proposes Wider FPI Access to Commodities

October 13, 2026

SEBI proposes to expand FPI access to commodity derivatives with safeguards including T-3 settlement, position transfer limits, and risk controls.

SEBI Proposes Wider FPI Participation in Commodity Derivatives

SEBI has issued a board memorandum proposing to broaden the participation of Foreign Portfolio Investors (FPIs) in Indian commodity derivatives markets. The proposal allows access with key safeguards: adherence to T-3 settlement cycles, restrictions on position transfers, and risk-based position limits.

The move aims to deepen market liquidity and attract global hedging interest, particularly in base metals, energy, and agricultural contracts. The framework integrates with existing derivatives trading infrastructure and mandates reporting via recognised depositories.

Market participants and legal advisors must review KYC and risk documentation protocols for FPIs. The proposal complements efforts to integrate Indian commodity markets with global benchmarks.

Citations

  • SEBI (FPI) Regulations, 2014 (proposed amendment, 2026)
Practice Areas:financial_regulationcommoditiesinternational_finance

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