INDIA MARKET LENS
2 outlets◆ MixedInstitutional Flows

Sebi board approves FPI play in non-agri commodity derivatives, expands scope of PMS

SEBI is in focus in an institutional flows development.

24 Sept 2026 · ET Stocks, Economic Times Markets

Sebi has approved new regulations allowing foreign portfolio investors to participate in non-agricultural commodity derivatives. This regulatory change aims to increase institutional participation and streamline existing portfolio manager regulations. The newly approved framework will clarify delivery structures for futures contracts to mitigate operational and tax challenges.

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This is an Index / institutional flows event. Passive and institutional flows move price independently of fundamentals, and around rebalancing dates they dominate it.

  • Sustained FII or DII direction moves the whole market, not just the names being bought — it sets the tape's tone.
  • With SEBI involved, this carries a regulatory dimension that can outlast the immediate market reaction.