The Reserve Bank of India (RBI) and the Insurance Regulatory and Development Authority of India (IRDAI) have expressed reluctance to permit banks and insurance firms to invest in commodity derivatives, according to a statement made by the chairman of the Securities and Exchange Board of India (SEBI) on Monday.
In September, SEBI announced plans to consult with the government on the possibility of allowing banks and pension funds to participate in commodity trading, as part of its initiative to bolster commodity markets in India.
SEBI Chairman Tuhin Kanta Pandey noted that the pension fund regulator was also considering the option for pension funds to invest in commodity derivatives, though he did not provide details regarding any finalized decisions.
Following the chairman’s remarks, shares of the Multi Commodity Exchange of India (MCX), which is India’s first listed exchange, declined by 3.4%.
In a separate development, SEBI is set to release an advisory aimed at market intermediaries concerning emerging risks associated with tools such as Anthropic’s Mythos and other artificial intelligence technologies. Pandey emphasized that the regulator aims to ensure that intermediaries are equipped to handle potential vulnerabilities in their systems.
Published on May 4, 2026.
