Mumbai — The Securities and Exchange Board of India (SEBI) is in advanced discussions with the Reserve Bank of India (RBI) to allow banks to participate in commodities derivatives trading, a move aimed at deepening market liquidity and strengthening price discovery mechanisms.
SEBI Chairman Tuhin Kanta Pandey confirmed that the proposal is under consideration as part of a broader effort to expand institutional participation in India’s commodities markets. The inclusion of banks, currently restricted to limited exposure, could provide greater stability and depth to the segment.
Meanwhile, Foreign Portfolio Investors (FPIs) have net sold ₹1.47 lakh crore in equities year-to-date (YTD) 2025, driven by global risk aversion, rising bond yields, and a stronger US dollar. Analysts say the trend reflects cautious sentiment toward emerging markets amid geopolitical and macroeconomic uncertainty.
Despite outflows, domestic institutional investors have largely cushioned the impact, keeping benchmark indices within range-bound levels as India remains one of Asia’s most resilient markets.
