Sebi plans to enhance institutional participation in commodity markets

New Delhi, Oct 16 (PTI) Markets regulator Sebi is looking to enhance institutional participation in agricultural and non-agricultural commodity markets to make them more attractive for hedging, its chairman Tuhin Kanta Pandey said on Thursday.

Speaking at the Bloomberg Forum for Investment Management, Pandey said that strengthening India's agri and non-agri commodity markets is important for Sebi.

"We are looking to enhance institutional participation to make this market more attractive for hedging," he added.

He also said, "Deepening our cash equities market and improving the derivatives market is a high priority for us". Further, the regulator would be thoughtful and consultative in proposing further measures to improve these markets.

Last month, Pandey had stated that Sebi will "engage" with the government to allow banks, insurance companies and pension funds to invest in non-agriculture commodity derivative markets.

He had stated that the capital markets regulator is also looking at a proposal to allow foreign portfolio investors to trade in non-cash settled, non-agricultural commodity derivative contracts.

Also, Sebi chief said that the regulator has taken concrete steps to deepen the corporate bond market, making it more accessible for both issuers and investors.

The regulator is also examining bond derivatives as another initiative to strengthen this segment, he said.

Additionally, the growth of municipal bonds is being encouraged through regulatory reforms and outreach programmes. PTI SP MR