Commodity derivatives markets (CDM) could see a deepening of participation within the next six months, with the regulator in advanced stages of permitting mutual funds and portfolio management service (PMS) providers to trade on the 14-year-old platform, Sebi ED SK Mohanty said on the sidelines of FICCI conference here on Tuesday.
Mohanty also called upon big corporate houses to hedge on domestic exchanges in the light of the upcoming institutional participation instead of participating in overseas exchanges.
PMS is provided by wealth management arms of brokers. In June, Sebi allowed commodity exchanges such as MCX and NCDEX to launch options on commodity futures and permitted Cat III AIFs -hedge funds and private equity funds that invest in listed companies -to participate in the CDM.
Much of the participation is currently confined to retail and wholesale traders, speculators and a few corporate hedgers, including jewellers, bullion dealers, grain dealers, etc.
As carried in ET