SEBI allows mutual funds to invest in exchange traded commodity derivatives
Updated : May 22, 2019 08:30 AM IST
Mutual funds can now invest in exchange traded commodity derivatives, except those on sensitive commodities, according to Sebi (Securities and Exchange Board of India).
To boost participation of mutual funds in the commodities market, the watchdog has allowed them to invest in Exchange Traded Commodity Derivatives (ETCDs) with certain restrictions.
In a circular, the regulator said that no mutual fund schemes can invest in physical goods except in 'gold' through Gold Exchange Traded Funds (ETFs).
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