The Securities and Exchange Board of India (SEBI) on Tuesday proposed widening the participation of foreign portfolio investors (FPIs) in exchange-traded commodity derivatives. FPIs are currently allowed to participate only in cash-settled non-agricultural commodity derivatives and indices comprising such commodities. SEBI has proposed allowing FPIs to trade non-agricultural index derivatives irrespective of whether their underlying contracts are cash-settled and permitting them to participate in non-cash-settled non-agricultural commodity derivatives. The proposal would also “facilitate greater integration of India's commodity derivatives market with international commodity markets” and support the development of Indian commodity contracts as credible price-discovery venues. Registered Foreign Portfolio Investors are also allowed to participate in Exchange Traded Commodity Derivatives with direct market access.