Sebi chief Ajay Tyagi bats for deeper commodity markets

The Securities and Exchange Board of India (Sebi) will look at introducing institutional players in the commodity markets in a gradual manner. "All institutions cannot come in at the same time," said Ajay Tyagi, chairman, Sebi at the international convention organised by Commodities market brokers.

This is the first public event addressed by the regulator since taking over on March 1. While institutions such as banks, alternative investment funds, which bring a more research approach to the market, will help the development of the market, "It has to be done gradually," he added. Declaring the improvement of commodity markets as a priority area, Tyagi hinted this will be part of several measures that the regulator is working on that will make the market more liquid and deepen it.

He foresaw 'more exciting time for the commodity markets.' Also on the agenda of the regulator, who took charge earlier this month is the integration of spot and derivatives market in the commodities space and the integration of this space itself with the rest of the securities market.

Tyagi said the regulator is deliberating on more measures that need to be introduced for encouraging the farming community.

At present, about 65,000 farmers are participating through 53 FPOs. The regulator added over 200 large mandis are integrated with the online spot market and more in the process of joining.

The event organised by commodities participants association of India was presided by minister of agriculture Radha Mohan Singh and included among guests Mos Finance Santosh Gangwar, BSE chief Ashish Chauhan and McX MD Mrugank Paranjpe.

Securities and Exchange Board of India ( SEBI )