Banks, MFs, FIIs be allowed to invest in Com trading: Manglik
Banks, mutual funds and FIIs should now be allowed to invest in commodities trading in line with global practices, a top commodities sector official said.
By PTI |
MUMBAI: Banks, mutual funds and FIIs should now be allowed to invest in commodities trading in line with global practices, a top commodities sector official said.
"In line with global practices, banks, mutual funds and FIIs should now be allowed to invest in commodities. Commodities are a globally accepted asset class now and should be treated as such," Religare Commodities President, Jayant Manglik, said.
Speaking about his expectations from the forthcoming budget for the commodities sector, Manglik said that options trading too should be allowed as it can help in healthy, liquid markets and obviate the need for excessive control.
"For healthy commodities markets, currency futures markets too need to be liberalised in terms of FII participation and client limit size so that the full benefits of globalisation can be enjoyed by Indian citizens," he said.
The commodities futures markets are now over five years old and while the growth has been impressive, a lot can be done so that India becomes a price-setter in commodities where it is either a major producer or consumer on a global scale, he said.
Manglik said that the Government needs to take steps to increase liquidity and depth in the markets. The issue of autonomy of the regulator and also warehouse/warehousing receipts are very important but, being bills which need to be tabled in Parliament, it may not be possible to make them part of budget announcements.
"In line with global practices, banks, mutual funds and FIIs should now be allowed to invest in commodities. Commodities are a globally accepted asset class now and should be treated as such," Religare Commodities President, Jayant Manglik, said.
Speaking about his expectations from the forthcoming budget for the commodities sector, Manglik said that options trading too should be allowed as it can help in healthy, liquid markets and obviate the need for excessive control.
"For healthy commodities markets, currency futures markets too need to be liberalised in terms of FII participation and client limit size so that the full benefits of globalisation can be enjoyed by Indian citizens," he said.
The commodities futures markets are now over five years old and while the growth has been impressive, a lot can be done so that India becomes a price-setter in commodities where it is either a major producer or consumer on a global scale, he said.
Manglik said that the Government needs to take steps to increase liquidity and depth in the markets. The issue of autonomy of the regulator and also warehouse/warehousing receipts are very important but, being bills which need to be tabled in Parliament, it may not be possible to make them part of budget announcements.
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