Archive · 22 Sep 2025
SEBI Considers Allowing FPIs to Trade in Gold and Silver
Imagine the Indian stock market also included things like gold and silver.
Right now, some big investors from other countries, called FPIs, can't easily trade these things.
SEBI, the stock market's boss, is thinking about changing this.
They want to let FPIs trade in gold, silver, and other metals.
This could bring more money and make the market bigger and easier to use.
More investors means it's easier to buy and sell, which helps everyone.
This could also help Indian companies protect themselves from price changes.
So, the change could make the market more active and useful for everyone involved.
SEBI is reviewing a proposal to allow FPIs to trade in non-cash settled, non-agricultural commodity derivatives.
The proposal would allow FPIs to trade in metals such as gold, silver, zinc, and lead.
Currently, FPIs can trade in financially settled non-agricultural commodity contracts.
The goal is to deepen the domestic commodity market and encourage institutional participation.
This move could increase liquidity and efficiency in price discovery.
- Who
- The Securities and Exchange Board of India (SEBI), and Foreign Portfolio Investors (FPIs)
- What
- SEBI is reviewing a proposal to allow FPIs to trade in non-cash settled, non-agricultural commodity derivatives, including gold and silver.
- When
- The proposal is under review currently.
- Where
- The domestic commodity market in India.
- Why
- To broaden the domestic commodity market and increase investor participation by allowing FPIs to trade.
- Key Entities
- SEBI, FPIs, Kotak Securities, MCQube
- Commodities Mentioned
- Gold, Silver, Zinc, Lead, Base Metals
- Current FPI Restrictions
- Cannot trade in physically settled non-agricultural commodities.
- Proposed Change
- Allow FPIs to trade in non-cash settled, non-agricultural commodity derivatives.
- Objective
- To broaden the market and increase investor participation.