GENERAL24 Sept 2026
SEBI widens FPI access to commodity derivatives; delivery rules laid out | Stock Market News
SEBI has allowed foreign portfolio investors (FPIs) to trade a wider range of non-agricultural commodity derivatives, including physically settled contracts. This should bring more foreign money and liquidity into India's commodity markets. But there's a catch: FPIs must close out positions three days before expiry, before the tender or delivery period starts, and cannot add fresh positions after that. Any leftover positions go to their broker's account.
Key Statutory Highlights
- SEBI's board has approved allowing FPIs to trade a wider range of non-agricultural commodity derivatives, including physically settled contracts.
- FPIs must square off physically settled positions three days before expiry, before the tender or staggered delivery period begins.
- Leftover positions can be transferred to the proprietary account of a designated trading member or trading-cum-clearing member at the exchange-declared closing or daily settlement price.
Actionable Advice for Taxpayers / Founders:If you deal in commodity derivatives or advise foreign clients, review your agreement with your trading member or clearing member now, so squaring off and handling of any residual positions are clearly covered.
Statutory Disclaimer: TaxQue Shorts are AI-assisted editorial briefs for compliance awareness. This brief has not passed every source check; confirm the original notification before acting. This does not constitute formal legal or CA counsel.
TaxQue News Desk
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