The regulator said greater foreign participation could help integrate India's commodity derivatives market more closely with international commodity markets and support the development of domestic commodity contracts as credible price-discovery venues. FPIs are currently permitted to participate only in cash-settled non-agricultural commodity derivatives and indices comprising such commodities. SEBI had allowed FPI participation in Indian exchange-traded commodity derivatives in 2022. The transferred position would be executed at the exchange-declared closing or daily settlement price, after which the FPI would have no further obligation or exposure to the position. SEBI's Commodity Derivatives Advisory Committee has backed both proposals.