The Securities and Exchange Board of India (SEBI) has given the go-ahead to mutual funds (MFs) to participate in the commodity derivatives segment.
In a circular issued on Tuesday, the regulator said that MFs can trade in exchange-traded commodity derivatives except those that have been defined as ‘sensitive commodities.’
MFs have been permitted to participate in the commodities segment through hybrid schemes that include multi-asset scheme and gold exchange traded funds (ETFs). Fund houses have also been directed to appoint a dedicated fund manager with requisite skill and experience in commodities market before participating in the commodities segment
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