SEBI has green‑lit foreign portfolio investors to trade in non‑agricultural commodity derivatives, with a strict Rs 10 lakh maximum settlement for any rule breach. This cap will fast‑track resolve disputes for cases below that threshold.
The board clarified that all non‑index contracts must be cash‑settled; index‑based derivatives remain unrestricted. Portfolio managers will now access foreign equities, debt, ETFs, REITs, and unlisted debt securities, and can leverage up to 1.25 times their clients’ assets in exchange‑traded derivatives.
In a statement, SEBI said the decision aims to deepen liquidity and sharpen price discovery, hoping to align derivatives prices more closely with the physical market.
The regulator also opened the door for celebrity endorsements of SEBI‑regulated products, provided safeguards are in place, and announced a single advertising code for brokers, mutual funds, advisers and other entities.
Beyond the FPI rule, SEBI will overhaul its settlement mechanism, introducing a new formula tied to the minimum penalty under securities laws and redefining disgorgement and remedial terms.
Looking ahead, the board plans to roll out the new settlement framework soon, while expanding investment options for portfolio managers and tightening enforcement for violations up to the Rs 10 lakh threshold.