The Securities and Exchange Board of India (SEBI) has stepped up efforts to spread awareness about the commodity derivatives market among farmers and agricultural stakeholders, Chairman Tuhin Kanta Pandey said on Saturday.
Speaking at the 11th convention of the Commodity Participants Association of India in Mumbai, Pandey said SEBI’s investor survey revealed the need for focused education programs. As a result, the regulator has launched targeted awareness initiatives across key sectors.
Focus on Farmers and Producer Groups
SEBI is conducting special programs for farmers, Farmer Producer Organisations (FPOs), exporters, importers, hedgers, and MSMEs. Students and faculty from agricultural colleges are also part of these initiatives.
The chairman said SEBI is engaging directly with FPO representatives. These outreach programs aim to understand the challenges they face while accessing commodity markets and managing price risks.
Training Support Through NISM
Pandey said the National Institute of Securities Markets (NISM) will play a key role in this initiative. The SEBI-run institute will train educators and market professionals to deliver structured awareness programs across the country.
This step is expected to strengthen grassroots-level knowledge of commodity derivatives.
Push for Institutional Participation
SEBI is also working with the Reserve Bank of India (RBI) and the Insurance Regulatory and Development Authority of India (IRDAI). The goal is to enable banks and insurance companies to participate in commodity derivatives.
According to Pandey, higher institutional participation will improve liquidity. It will also make the market more attractive for hedging purposes.
New Working Group on Non-Agricultural Commodities
The SEBI chairman announced that a new working group will be formed soon. This group will review the non-agricultural commodity derivatives segment.
Meanwhile, existing expert panels are examining ways to deepen the agriculture and commodity derivatives ecosystem. They are reviewing margin rules, position limits, and settlement mechanisms without affecting market integrity.
Addressing Taxation Challenges
Beyond market participation, Pandey highlighted taxation-related issues. He said SEBI is engaging with the government to resolve Goods and Services Tax (GST) concerns.
These issues mainly affect participants involved in the delivery of commodities through exchange platforms.
