FPIs to be allowed in non-agri commodity derivatives: NSE

Mumbai: The National Stock Exchange on Monday said foreign portfolio investors (FPIs) would be allowed to participate in cash settled non-agricultural commodity derivative contracts and indices.

The exchange said FPIs desirous of participating in exchange-traded commodity derivatives (ETCDs) would be subject to risk management measures applicable from time to time.

FPIs other than individuals, family offices and corporates may participate in eligible commodity position limit norms as may be applicable to clients, issued by Sebi and the exchange, it said.

However, FPIs belonging to categories such as individuals, family offices and corporates would be allowed position limit of 20% of the client level position limit in a particular commodity derivative contract. Last year, the Securities and Exchange Board of India had allowed foreign investors to participate in Indian ETCDs through the FPI route.