Reaction to SEBI allowing Category III Alternative Investment Funds (AIFs) in commodity derivatives market

Mr.Mrugank Paranjape, MD & CEO, MCX, “We are very happy with the decision of SEBI to allow Category III Alternative Investment Funds (AIFs) in the commodity derivatives market. With this move, a significant beginning has been made to not just provide access to a fast-growing asset class to the investor community, but also to unlock the potential this asset class holds. The presence of AIFs, we are sure, will spur the infusion of research based information, capital, innovation and new trading strategies in India’s commodity markets, improving the quality of price discovery, lending it a degree of depth and vibrancy which matches the global standards we have long been aspiring for. We are also confident that such depth and vibrancy of the market will, in turn, incentivise hedging interest in India’s commodity derivatives market to a great extent.”