1 week ago
SEBI Seeks Indian Commodity Benchmarks and Global Pricing Influence
India wants its commodity markets to have more influence over prices.
SEBI official Pandey said India should not only follow prices set elsewhere.
He suggested creating benchmarks based on Indian delivery standards and market conditions.
Commodity trading has grown very quickly in India.
However, SEBI says a large market is not enough if it does not help businesses and farmers.
Better markets could help people decide when to plant crops, buy materials, or sell goods.
SEBI is also working on rules for physical delivery, storage, quality checks, and foreign investment.
The goal is to create trusted Indian price signals and eventually strengthen India’s role in global price discovery.
SEBI’s Pandey urged India to shift from being a commodity price taker to becoming a price maker.
He called for exploring Indian delivery standards and credible benchmarks reflecting domestic market realities.
Futures turnover rose 133% to ₹166.4 lakh crore in FY2025-26, while options premium turnover exceeded ₹16.8 lakh crore.
SEBI said market utility, including price discovery and risk management, matters more than turnover alone.
The regulator is examining physical settlement, foreign investor access, and revised position-limit and margin frameworks.
- Who
- The Securities and Exchange Board of India (SEBI), represented by Pandey, and participants in India’s commodity-market ecosystem.
- What
- SEBI is promoting Indian commodity benchmarks and delivery standards while reviewing rules for physical settlement, foreign investor access, position limits, and margins.
- Where
- India’s commodity derivatives market, with implications for global commodity price discovery.
- When
- The proposals were discussed against market conditions in 2026; futures and options figures cited cover FY2025-26 and the first four months of FY2026-27.
- Why
- To create price signals that better reflect India’s physical markets, delivery systems, and consumption patterns, while helping businesses and producers manage risk.
Key facts
- FY2025-26 futures turnover
- ₹166.4 lakh crore, up 133%.
- FY2025-26 options premium turnover
- ₹16.8 lakh crore, more than double the previous level.
- FY2026-27 early turnover
- During the first four months, turnover reached around 65% of the previous financial year’s level.
- SEBI’s benchmark proposal
- Explore moving progressively from global benchmarks toward Indian delivery standards.
- Physical settlement
- SEBI has completed consultations on a phased architecture for agricultural commodities.
- Foreign portfolio investors
- SEBI is examining wider access to commodity indices and physically settled non-agricultural contracts.
- Global commodity outlook
- The World Bank shifted its 2026 forecast from a 7% decline to a 16% increase, including a projected 24% rise in energy prices.
Quotes
SEBI official Pandey
SEBI official advocating greater Indian influence over commodity pricing
“The next stage of India’s commodity derivatives market should be defined not by turnover alone, but by utility”
businesstoday.in
“develop credible Indian benchmarks that reflect our own market realities.”
businesstoday.in
Sources
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