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Informist, Saturday, Dec. 20, 2025

 

--SEBI Pandey: To form working group to review non-agri commodity F&O rules

--CONTEXT: SEBI Chairperson Tuhin Kanta Pandey's comments at event in Delhi

 

MUMBAI – The Securities and Exchange Board of India will form a working group soon to review non-agricultural derivatives segment, Chairman Tuhin Kanta Pandey said at an event in New Delhi. SEBI is also engaging with the Reserve Bank of India and the Insurance Regulatory and Development Authority of India to allow banks and insurance companies to participate in the commodity derivatives market.

 

Pandey said the SEBI is waiting for recommendations from working groups which were set up to suggest improvements in order to deepen the commodity derivatives market. "These expert groups, among other things, are reviewing whether the regulatory framework, pertaining to margins, position limits, delivery and settlement mechanism, can be optimised without affecting market integrity," he said.

 

Pandey acknowledged that there were some issues related to the goods and services tax among commodity investors. "...we need to work with both the GST council, secretariat, and more broadly, with the GST council to see some of the very important issues are resolved in order to actually spur the markets, especially in agriculture and non-agriculture segments, including gold," he said. 

 

Pandey said investors and traders recommend that the government charges integrated goods and services tax for commodity derivatives. Further, traders of electronic gold have recommended providing the facility of input tax credit for the derivatives contracts to be viable. 

 

On the major overhaul being done in SEBI regulations for ease of doing business, Pandey said the changes planned as part of phase 1 are done and the changes planned for phase 2 will be completed soon. The regulator had on Thursday announced several changes to regulations related to mutual funds and stock brokers, including removing redundant provisions, making things simpler to understand, and reduce the overall size of the document.

 

On the issue of agriculture commodity derivatives, Pandey said SEBI's latest study found that the ban on trading in futures of several commodities could be lifted if their markets are regulated. The development of these derivatives is facing an issue as there is no common understanding between states, which control spot markets, and the Centre, which controls the derivatives market, he said on the sidelines of the event.

 

He said there are concerns that speculations in the commodity derivatives market may influence prices in the spot market. Two working groups are currently looking at the agriculture segments and these groups include farmers and their representatives, he said.  End

 

Reported by Shakshi Jain and Anshul Choudhary

Edited by Deepshikha Bhardwaj

 

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