Securities and Exchange Board of India (SEBI) has floated a consultation paper for feedback on allowing the entry of mutual funds (MFs) and portfolio management services (PMS) into the 14-year old commodity derivatives market. In an interview with CNBC-TV18, Mrugank M Paranjape, MD & CEO of Multi Commodity Exchange of India (MCX) discussed about the same.
This is an extremely welcome step. If we all want to take the commodities market to the next level, we have to make sure that we embrace these new instruments, make sure that MFs and PMS providers can use commodity markets effectively so that we can get real depth and real retail participation going in the commodities market, he said.
MFs entering the commodity derivatives market should be a reality by Q1 of FY19, he added.
It will probably take a couple of quarters before we start seeing MFs and PMS providers come in, said Paranjape.
Speaking about future growth, he mentioned that we had extremely enthusiastic response to the launch of the product and during the entire first contract that we had, the open interest (OI) was building up till the end, so this was a very reassuring fact for us that people were increasing their participation.
For full interview, watch accompanying video...
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