Will boost commodity market risk management system: Sebi chief

The Securities and Exchange Board of India (Sebi) will give priority to strengthening risk management systems for commodity markets, its chief UK Sinha said.

Many measures have been taken by Sebi on strengthening the commodity derivatives market in the last one year after the market regulator’s merger with Forward Markets Commission (FMC) on September 28, 2015. Sebi is also looking at allowing players like mutual funds, banks and insurance companies to participate in commodity derivatives market.

“Our first priority had been and will continue to ensure that there is very active surveillance and the risk management system on the commodity side as robust and as strong as Sebi has been developed on the security side,” Sebi chairman UK Sinha said at a press conference where he discussed one year of Sebi’s merger with FMC.

Though Sebi added that a lot of development has happened in the last one year and more will follow going forward on commodity derivatives, it will be cautious development. Few days ago, Sebi had allowed trading ‘options’ on the commodity derivatives exchanges.

Securities and Exchange Board of India ( SEBI )