The capital and commodity market regulator SEBI has allowed foreign entity with commodity exposure in India to hedge their position in domestic commodity exchanges.
SEBI had issued a consultation paper on May 18 to discuss the suitable framework for allowing foreign participants to hedge their commodity exposure in Indian commodity exchanges.
Based on feedback received from the market participants during the consultative process, it has been decided to permit foreign entities having actual exposure to Indian commodity markets, to participate in the commodity derivative segment of recognised boursesstock for hedging their exposure, said SEBI on Tuesday.
The foreign entities will be known as “Eligible Foreign Entities,” it added.