Tuhin Kanta Pandey Pandey mentioned SEBI has already arrange a working group to counsel measures to deepen the agriculture and commodity derivatives ecosystem. File | Photograph credit score: Reuters
Market regulator SEBI plans to arrange a working group to look into the non-agricultural derivatives sector, its chairman Tuhin Kanta Pandey mentioned on Saturday (December 20, 2025).
He added that the working group would be told quickly.
Talking on the eleventh Worldwide Convention of Commodity Capital Individuals Affiliation of India (CPAI), Pandey mentioned SEBI can also be working with the Reserve Financial institution of India (RBI) and the Insurance coverage Regulatory and Growth Authority of India (IRDAI) to allow participation of banks and insurance coverage firms within the commodity derivatives market.
He mentioned stronger institutional investor participation would improve liquidity and make the market extra enticing for hedging functions.
“After due session with all stakeholders, we’ll arrange a separate working group to contemplate the non-agricultural derivatives sector. This working group will likely be notified quickly,” the SEBI chief mentioned.
Pandey mentioned SEBI has already arrange a working group to counsel measures to deepen the agriculture and commodity derivatives ecosystem. These professional teams are contemplating numerous elements, together with whether or not the present regulatory framework governing margins, place limits, supply and settlement mechanisms could be optimized with out compromising market integrity.
He mentioned the suggestions of those our bodies would assist regulators take essential improvement measures.
Past institutional participation, Pandey emphasised the necessity to tackle taxation-related hurdles. He mentioned SEBI will proceed its engagement with the federal government to resolve the Items and Providers Tax (GST) points confronted by market members, particularly these looking for to select up or ship items by way of change platforms.
“There are a number of challenges that should be addressed in relation to GST. We have to work carefully with the GST Council Secretariat and the GST Council to resolve a few of these key points to actually foster the event of commodity markets,” he mentioned, including that that is notably necessary for each the agricultural sector and the non-agricultural sector, together with gold.
Elaborating on the gold ecosystem, Pandey identified that the Indian market already gives a wide range of regulated gold merchandise by way of commodity derivatives, gold exchange-traded funds (ETFs) and digital gold receipts (EGRs), all of which guarantee safety for buyers.
He mentioned EGR envisions making a regulated marketplace for gold buying and selling and positioning India as a worldwide value discovery middle for the dear metallic.
Nevertheless, he acknowledged that the EGR framework has to date not gained the specified traction and must be reviewed.
“I believe there are challenges in relation to GST,” Pandey mentioned, calling on trade gamers to coach buyers and encourage them to solely commerce in regulated gold merchandise.
