MCX shares gain 1.5% after Sebi proposes letting FPIs trade physically settled non-agri commodity derivatives
AI Market Summary
India's Sebi proposed allowing FPIs to trade physically settled non-agricultural commodity derivatives with safeguards to prevent delivery obligations. The change could broaden the foreign investor base, deepen liquidity, and improve price discovery, with bullion cited as a key beneficiary. The consultation has already supported commodity-exchange equities, and increased institutional participation could lift near-term volumes and market depth across non-agri commodity futures and options.
Impact level
● Medium
Affected assets
NCCOGOLD2USD/USDT+0.76%
AI Insight · NCCOGOLD2USD/USDTAI Insight
▲ Bullish
Trade now
⚠️ AI-generated insights are based on news content and are provided for informational purposes only. They do not constitute investment advice or represent the views of BingX. Investing involves risk. Please trade responsibly.
India’s securities regulator has proposed allowing foreign portfolio investors (FPIs) to trade physically settled non-agricultural commodity derivatives. Following the announcement, Multi Commodity Exchange shares rose about 1.5%. JPMorgan said the change could bring incremental FPI flows and lift average daily futures and options volumes, while Jefferies estimated the related business could add 3% to 10% to MCX net profit. FPI participation in cash-settled commodity derivatives is currently around 5-6%.
