Sebi proposes wider FPI access to non-agri commodity derivatives

India has special markets where people trade things like oil, gold and metal rather than company shares, and these are called commodity markets.

Today, investors from other countries can only trade a few of these products, like oil and gas, and only in a way that avoids taking physical goods.

India's market regulator, called Sebi, wants to let these foreign investors trade many more of these products, including contracts where real goods would normally be delivered.

There is one big problem: foreign investors are not registered for India's goods and services tax, so they cannot take delivery of actual goods from exchange warehouses.

Sebi has come up with a rule to solve this.

Investors would have to close or roll over their trades a few days before contracts end.

If they don't, the trade automatically moves to a broker, so foreign investors never have to take physical goods.

Sebi says the change should bring in more institutions, better prices and stronger links between derivatives and physical markets.

Sebi is asking the public for opinions until 1 September before making a final decision.