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.