Bank, insurance regulators not inclined to allow commodity derivative investments: SEBI

The Reserve Bank of India and the Insurance Regulatory and Development Authority of India are not inclined to allow banks and insurance companies to invest in ‌commodity ⁠derivatives, the ⁠chairman of India's markets regulator said on Monday.

The Securities and Exchange Board of India in September said it will engage with the government to enable banks and pension funds to trade commodities ⁠as part ‌of its agenda to strengthen commodities markets.

In his statement on Monday, ⁠SEBI Chairman Tuhin Kanta Pandey added that India's pension fund regulator had also looked at allowing pension funds to invest in commodity derivatives, but did not disclose whether it had made a decision.


Shares of Multi Commodity ‌Exchange of India(MCX), India's first listed exchange, fell 3.4% after the chairman's comment.

Separately, SEBI will ⁠soon issue an advisory to market intermediaries on emerging risks from Anthropic's Mythos and other artificial intelligence tools, Pandey said, adding that the regulator wants intermediaries to be prepared for potential system vulnerabilities.