Nod for FPI entry in ETC derivatives

Mumbai: Capital markets regulator Sebi on Wednesday decided to allow foreign portfolio investors (FPIs) to participate in the exchange-traded commodity derivatives (ETCD) segment, a move that will further increase depth and liquidity in the market.

The board of Sebi, during its meeting held on Wednesday, also approved amendments to rules governing mutual funds and portfolio managers.

Further, it has cleared amendments to SECC Regulations provisions relating to Limited Purpose Clearing Corporation (LPCC) for clearing and settlement of corporate bond repo transactions.

In a significant move, Foreign Portfolio Investors (FPIs) will be allowed to trade in all non-agricultural commodity derivatives and select non-agricultural benchmark indices. Initially, FPIs will be allowed only in cash-settled contracts.