📷 Image: Wikimedia Commons / Brajesh Ohdar
Business
SEBI expands commodity derivatives access for FPIs with T+3 settlement safeguard
✍️ Asianet Newsable
🗓 25 Sep 2026, 03:16 AM
👁 13
The Securities and Exchange Board of India has approved foreign portfolio investors to trade a broader range of commodity derivatives, introducing a T+3 settlement safeguard.
The Securities and Exchange Board of India (SEBI) announced that foreign portfolio investors (FPIs) will now be permitted to participate in a wider set of commodity derivative contracts. The move is aimed at deepening market participation and aligning India’s commodity market with global standards.
To mitigate settlement risk, SEBI introduced a T+3 (trade plus three days) settlement safeguard for these additional contracts. This mechanism ensures that the transfer of securities and funds is completed within three business days after the trade, providing an extra layer of protection for market participants.
Industry observers expect the expanded access to attract more foreign capital into India’s commodity segment, potentially enhancing liquidity and price discovery. SEBI has indicated that the new framework will be operational shortly, subject to compliance by market intermediaries.
The decision reflects SEBI’s broader strategy of liberalising market access while maintaining robust risk controls, signalling confidence in the resilience of India’s commodity markets.
To mitigate settlement risk, SEBI introduced a T+3 (trade plus three days) settlement safeguard for these additional contracts. This mechanism ensures that the transfer of securities and funds is completed within three business days after the trade, providing an extra layer of protection for market participants.
Industry observers expect the expanded access to attract more foreign capital into India’s commodity segment, potentially enhancing liquidity and price discovery. SEBI has indicated that the new framework will be operational shortly, subject to compliance by market intermediaries.
The decision reflects SEBI’s broader strategy of liberalising market access while maintaining robust risk controls, signalling confidence in the resilience of India’s commodity markets.