According to SEBI, Foreign Portfolio Investors(FPIs), can participate in commodity derivatives trading on stock bourses located in International Financial Services Center(IFSC).

This permission is based on certain conditions, including that their participation will be limited to the derivatives contracts in non-agricultural commodities only.

Further it said, the decision has been taken after representations received from the exchanges operating in IFSC and after consultations with RBI and government.

According to Sebi, contracts would be “cash settled on the settlement price determined on overseas exchanges.”

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