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SEBI chief Tuhin Kanta Pandey on Saturday, December 20, said the market regulator is engaging with the GST Council to resolve GST issues in commodity trading.
GST hurdles impact delivery and settlement on exchange platforms. "We are working with the GST Council Secretariat to unlock market participation," he added.
Pandey said resolving GST issues is key to boosting agriculture and non-agriculture commodities, including gold. GST clarity will help deepen physical delivery and improve market liquidity, he said.
A single investor protection fund
The SEBI chairman said the market regulator is examining a proposal for a single investor protection fund (IPF) across all exchange products.
At present, separate IPFs exist for equity and commodity segments and the market regulator wants to simplify this.
"Our investor survey shows a strong need for targeted awareness in commodity derivatives," he said. SEBI is focusing outreach on farmers, FPOs, exporters, MSMEs and agri-college students.
The MSME outreach programmes with FPO representatives are identifying access challenges, he said. NISM will train educators to deliver commodity market awareness programmes, he added.
Regulated gold products
SEBI offers regulated gold products via commodity derivatives, gold ETFs and electronic gold receipts.
Pandey said these regulated gold products ensure investor protection.
Electronic gold receipts (EGRS) were meant to create a regulated gold market and position India as a global price centre, he said. However, EGRS have not taken off. "We need to review the framework, including GST-related challenges," he said, urging investors to deal only in regulated gold products.
On commodities
The SEBI chief said the market regulator has reduced nickel contract lot size to attract smaller participants after its relaunch in August 2025. Nickel futures have seen higher trading turnover compared to the fiscal year 2025.
Commodity markets will remain high on SEBI's regulatory and developmental agenda, he said.
Pandey added that SEBI has set up expert working groups to deepen agriculture and commodity derivatives. Margins, position limits and delivery norms are being reviewed without compromising market integrity, he said.
GST hurdles impact delivery and settlement on exchange platforms. "We are working with the GST Council Secretariat to unlock market participation," he added.
Pandey said resolving GST issues is key to boosting agriculture and non-agriculture commodities, including gold. GST clarity will help deepen physical delivery and improve market liquidity, he said.
A single investor protection fund
The SEBI chairman said the market regulator is examining a proposal for a single investor protection fund (IPF) across all exchange products.
At present, separate IPFs exist for equity and commodity segments and the market regulator wants to simplify this.
"Our investor survey shows a strong need for targeted awareness in commodity derivatives," he said. SEBI is focusing outreach on farmers, FPOs, exporters, MSMEs and agri-college students.
The MSME outreach programmes with FPO representatives are identifying access challenges, he said. NISM will train educators to deliver commodity market awareness programmes, he added.
Regulated gold products
SEBI offers regulated gold products via commodity derivatives, gold ETFs and electronic gold receipts.
Pandey said these regulated gold products ensure investor protection.
Electronic gold receipts (EGRS) were meant to create a regulated gold market and position India as a global price centre, he said. However, EGRS have not taken off. "We need to review the framework, including GST-related challenges," he said, urging investors to deal only in regulated gold products.
On commodities
The SEBI chief said the market regulator has reduced nickel contract lot size to attract smaller participants after its relaunch in August 2025. Nickel futures have seen higher trading turnover compared to the fiscal year 2025.
Commodity markets will remain high on SEBI's regulatory and developmental agenda, he said.
Pandey added that SEBI has set up expert working groups to deepen agriculture and commodity derivatives. Margins, position limits and delivery norms are being reviewed without compromising market integrity, he said.
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