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Securities and Exchange Board of India (SEBI) | Commodity Participants Association of India (CPAI)
At the 11th Convention of the CPAI on December 20, 2025, SEBI Chairman Shri Tuhin Kanta Pandey outlined a strategic roadmap to institutionalize India’s commodity derivatives market, which has seen its annual notional turnover surge to ₹628 trillion as of October 2025. Against a backdrop of 8.2% GDP growth, SEBI is transitioning the market from a retail-heavy segment to a sophisticated, institutionally-backed ecosystem.
Key Pillars of the 2026 Roadmap:
Institutional Integration: SEBI is actively engaging with the RBI and IRDAI to enable the participation of banks and insurance companies in commodity derivatives, aiming to inject significant liquidity and professional hedging depth.
Regulatory Optimization: Working groups have been established to review and optimize margins, position limits, and settlement mechanisms for both agricultural and non-agricultural segments to ensure the framework supports high-volume institutional trade.
Infrastructure for Sovereignty: The focus on Electronic Gold Receipts (EGRs) is designed to establish India as a global price-setter for gold, moving beyond a “price-taker” status through a regulated, transparent exchange platform.
Operational Efficiency: Reform measures include shortening the staggered delivery period to three days and implementing a Common Reporting Portal (Samuhik Prativedan Manch) to reduce the compliance burden for brokers.
Market Expansion: Following the July 2025 launch of Electricity Futures, SEBI is targeting specialized participation from state utilities and power generators to manage energy price volatility.
What is the “Samuhik Prativedan Manch” mentioned in the roadmap? It is the Common Reporting Portal designed to streamline and centralize the reporting requirements for stock brokers. By providing a single point of interface for compliance, it significantly enhances the “Ease of Doing Business” by eliminating redundant reporting across multiple platforms.
Policy Relevance
The roadmap reflects SEBI’s shift toward a principle-based regulatory architecture that prioritizes market depth and investor protection simultaneously.
Risk Mitigation for the Real Economy: By deepening the derivatives market, SEBI enables Indian producers and MSMEs to hedge against “weather shocks” and “geopolitical supply disruptions,” stabilizing domestic input costs.
Financialization of Commodities: The move to allow banks and insurers to trade commodities marks the final step in integrating commodities into the broader national financial planning framework.
Global Price Leadership: Strengthening the EGR and base metal (e.g., nickel) frameworks is a strategic move to ensure Indian domestic demand dictates global price discovery.
Relevant Question for Policy Stakeholders: How will SEBI ensure that the entry of high-frequency institutional players, such as banks and insurance firms, does not lead to increased price volatility for essential agricultural commodities, impacting food security for the common citizen?
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