SEBI Expands FPI Access to Commodity Derivatives and Onboarding

The Securities and Exchange Board of India approved a proposal on September 24, 2026, allowing foreign portfolio investors (FPIs) to trade a broader range of exchange-traded commodity derivatives. FPIs can now participate in non-agricultural index derivatives and non-cash-settled non-agricultural commodity derivatives. To prevent FPIs from entering the physical delivery process, the regulator mandated that investors exit positions three days before contract expiry and prohibited increasing positions starting from that T-3 day mark.

SEBI Chairman Tuhin Kanta Pandey announced a commitment to fast-track the onboarding process for FPIs to facilitate smoother global capital entry. Pandey highlighted collaborations with the Reserve Bank of India to reduce entry barriers through digital solutions like e-PAN and allowing overseas branches of Indian banks to certify documents. He noted that India's FPI assets under custody currently stand at approximately Rs 78 lakh crore (USD 800 billion).

Other regulatory overhauls approved during the board meeting include revamped Portfolio Managers Regulations permitting participation in debt IPOs and direct mutual fund investments. The board also introduced new Settlement Regulations for 2026 to accelerate dispute resolution and launched a Common Advertisement Code that allows celebrity endorsements.