Commodity derivatives trade allowed at IFSC bourses

NEW DELHI: Markets regulator Sebi has allowed trading in commodity derivatives at stock exchanges operating in International Financial Services Centre ( IFSC).

The move comes after amendment was made under Securities Contracts Regulation Act to include commodity derivatives as securities.

Sebi last year began regulating the commodity derivatives market as well. In a circular on Thursday, Sebi said “commodity derivatives shall be eligible as securities for trading and stock exchanges operating in IFSC may permit dealing in commodity derivatives”.

Under the IFSC regime, any recognised domestic or foreign stock exchange can set up a subsidiary, in the financial services centre, provided they hold at least 51% stake in the venture.