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India to allow category III AIFs to invest in commodity derivatives

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Reuters MUMBAI
Last Updated : Jun 21 2017 | 5:08 PM IST

MUMBAI (Reuters) - Securities and Exchange Board of India (SEBI)on Wednesday allowed category III alternative investment funds (AIFs) to invest in the commodity derivative markets, provided they do not invest more than 10 percent of their investable funds in one underlying commodity.

Category III AIFs, such as hedge funds, will also be allowed to use leverage to invest into the commodity derivatives market, SEBI said in a statement.

These funds will become the first institutional investors to be given access to India's commodity derivatives as part of SEBI's push to develop this market.

For full release see: https://bsmedia.business-standard.combit.ly/2sT6p7e

(Reporting by Abhirup Roy; Editing by Rafael Nam)

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First Published: Jun 21 2017 | 4:52 PM IST

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