Mumbai, Aug 12: India’s commodity markets need regulatory standards that take into account the country’s own economic conditions, market structure and business environment, Securities and Exchange Board of India (SEBI) Chairman Tuhin Kanta Pandey said.
Speaking on the development of the commodity market, Pandey underlined the importance of creating a framework that is practical for Indian market participants while continuing to meet global standards of transparency, efficiency and investor protection.
He said international practices can provide useful guidance, but they need to be adapted to India’s specific circumstances rather than being followed without considering local realities.
A well-developed commodity market can play an important role in helping businesses manage price risks and improve price discovery. It can also provide producers, traders, consumers and other participants with better tools to deal with fluctuations in commodity prices.
Pandey’s remarks come as Indian regulators and market institutions continue to work towards strengthening the commodity derivatives ecosystem. Greater participation, improved liquidity, efficient risk management and stronger market infrastructure remain important areas of focus.
The SEBI chief also highlighted the broader need to ensure that regulatory reforms remain connected to the practical challenges faced by businesses and investors.
For India, developing a deeper and more efficient commodity market is particularly important given the country’s diverse agricultural, energy and industrial sectors. A market framework designed around domestic conditions can help improve participation while supporting greater transparency and confidence.
At the same time, maintaining robust safeguards will remain essential as the commodity derivatives market expands. Effective regulation, responsible participation and sound risk-management practices can help ensure that market growth is sustainable.
The emphasis on India-specific standards reflects a broader effort to build financial markets that are globally credible while remaining responsive to the needs of the domestic economy.
A stronger commodity market, supported by appropriate regulation and modern infrastructure, can ultimately contribute to better price discovery, improved risk management and greater efficiency across India’s commodity ecosystem.
