SEBI allows FPIs to participate in Exchange Traded Commodity Derivatives Market

PR No.21/2022, Dated: 29.06.2022

The SEBI, in its board meeting, has decided to allow FPIs to participate in the Exchange Traded Commodity Derivatives market to enhance liquidity and market depth. Further, the board considered and approved the amendments to the SEBI (Portfolio Managers) Regulations, 2020, to enhance prudential norms for investments by portfolio managers including investments in associates/ related parties. Also, the board approved the SEBI Annual Report: 2021-22.

The Board approved an amendment to SEBI (Mutual Funds) Regulations, 1996 to remove the applicability of the definition of “associate” as per the said regulations to such sponsors, which invest in various companies on behalf of the beneficiaries of insurance policies or such other schemes as may be specified by the Board from time to time. Further, the board approved the amendments to the SEBI (Portfolio Managers) Regulations, 2020, to enhance prudential norms for investments by portfolio managers including investments in associates/ related parties.

The Board considered and approved the proposals for making amendments to the provisions of the Securities Contracts (Regulation) (Stock Exchanges and Clearing Corporations) Regulations, 2012 to align the provisions of the SECC regulations with those of the RBI Central Counter Party Directions, 2018.

In respect of the requirements of the RBI’s Directions for Central Counterparties and the Payment and Settlements Systems Act, 2007 (PSS Act) administered by RBI, the Board considered and approved the following proposals:

1. Over time, the LPCC shall put in place a mechanism for infusion of additional capital in a phased manner, in line with the risk management and increasing trading volumes in order to meet the net worth requirements under the PSS Act and;

2. SEBI, in consultation with RBI, will review the outsourcing agreements of the LPCC in relation to its core and critical IT support infrastructure/activities for running the core activities (transaction process, clearing, and settlement) after two or three years.

Click Here To Read The Full News