India Regulators Discuss Allowing Banks to Trade Commodities (2)

India’s securities market regulator and its central bank are exploring the prospect of allowing commercial lenders to trade in commodity derivatives, a move aimed at deepening liquidity in the asset class.

The Securities and Exchange Board of India is in discussion with the Reserve Bank of India to help banks participate in commodities derivatives, the SEBI Chairman Tuhin Kanta Pandey said at an industry event on Thursday. The regulator said it will work with the central bank on a framework that allows prudential access to the market for financial institutions.

Pandey’s comments come as the SEBI looks to increase institutional ...