Markets regulator SEBI is working on measures to address challenges faced by the Electronic Gold Receipt (EGR) framework, with the objective of strengthening it as a credible price benchmark for gold in India.
SEBI is also exploring steps to deepen participation and liquidity across agricultural and non-agricultural commodity markets. One of the key proposals under consideration is allowing foreign portfolio investors (FPIs) to participate in non-cash-settled, non-agricultural commodity derivatives, which could significantly enhance market depth and price discovery.
The regulator believes that broader participation, especially from global investors, will help align domestic commodity prices more closely with international benchmarks while improving transparency and efficiency.
By addressing operational and liquidity-related hurdles in EGRs and expanding the investor base in commodity derivatives, SEBI aims to strengthen IndiaтАЩs commodity market ecosystem and position EGRs as a reliable domestic reference for gold pricing.
