Sebi Chief Says RBI, IRDAI Not Inclined To Allow Commodity Derivative Investments; MCX Falls 3.4%
Last Updated:
Tuhin Kanta Pandey says India’s pension fund regulator had looked at allowing pension funds to invest in commodity derivatives, without disclosing whether it had made a decision.
Tuhin Kanta Pandey said Sebi will soon issue an advisory to market intermediaries on emerging risks from Anthropic’s Mythos and other artificial intelligence tools. (File Photo)
The Reserve Bank of India (RBI) and the Insurance Regulatory and Development Authority of India (IRDAI) are not inclined to allow banks and insurance companies to invest in commodity derivatives, the chairman of India’s markets regulator said on Monday.
The Securities and Exchange Board of India (Sebi) in September had said it would engage with the government to enable banks and pension funds to trade commodities as part of its agenda to strengthen commodities markets.
In his statement on Monday, Sebi Chairman Tuhin Kanta Pandey added that India’s pension fund regulator had also looked at allowing pension funds to invest in commodity derivatives, but did not disclose whether it had made a decision.
He added that commodity derivatives may not align well with the long-term investment profiles of insurance companies. “Commodity derivatives don’t make much sense for insurance firms, which typically focus on long-term investments,” he said, indicating that the current stance reflects the rationale of the respective regulators.
The Sebi chief said the markets regulator will not pursue the matter further with RBI and IRDAI for now. “They have their rationale… we will leave it here,” he noted.
Shares of Multi Commodity Exchange of India (MCX) fell 3.4% after the chairman’s comment.
Separately, Sebi will soon issue an advisory to market intermediaries on emerging risks from Anthropic’s Mythos and other artificial intelligence tools, Pandey said, adding that the regulator wants intermediaries to be prepared for potential system vulnerabilities.
(With inputs from agencies)
Read More
