Based on representations received from the exchanges operating in IFSC and after consultations with the Government and the Reserve Bank of India, on September 26, 2017, SEBI decided that FPIs shall be permitted to participate in commodity derivatives contracts traded in stock exchanges in IFSC subject to following conditions:

  1. The participation would be limited to the derivatives contracts in non-agricultural commodities only.
  2. Contracts would be cash settled on the settlement price determined on overseas exchanges.
  3. All the transactions shall be denominated in foreign currency only.

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