India’s markets regulator considers easing position limits for commodity derivatives

India’s markets regulator: India’s markets regulator, the Securities and Exchange Board of India (SEBI), oversees the regulation of securities markets and commodity derivatives trading across the country. It focuses on maintaining market integrity, managing risks, and promoting liquidity through targeted policy adjustments. In this development, SEBI is actively reviewing position limits for non-agricultural contracts and settlement mechanisms for select agricultural ones to deepen participation by genuine hedgers. Regulation: SEBI revised client-level position limits and penalty structures for agricultural commodity derivatives in September 2026 to support ease of doing business. Market Access: Last month, SEBI approved expanded participation by foreign portfolio investors in non-agricultural commodity derivative contracts subject to safeguards. Market Reforms: SEBI is addressing structural issues in commodity markets, including GST-related frictions for exchange participants, alongside consultations on phased settlement approaches.