SEBI Discovers RBI, IRDAI Resistance to Commodity Derivative Investments, MCX Stocks Dip 3.5%

SEBI Chairman Warns of Strict Rules on Commodity Derivatives Investments

The Reserve Bank of India and the Insurance Regulatory and Development Authority of India are unlikely to permit banks and insurance companies to invest in commodity derivatives, according to SEBI Chairman Tuhin Kanta Pandey. This announcement has led to a decline in the shares of Multi Commodity Exchange of India (MCX), with the stock falling up to 3.5%.

In September, the Securities and Exchange Board of India (SEBI) expressed its intention to engage with the government to enable banks and pension funds to trade commodities as part of its agenda to strengthen commodities markets. However, the status of this proposal remains unclear.

At 1:20 pm on May 4, MCX shares were trading 1.5% lower, valued at Rs 2,925.8 per share. SEBI Chairman Pandey also emphasized the importance of preparedness for potential system vulnerabilities related to emerging risks from artificial intelligence (AI) tools, such as Anthropic's Mythos.

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SEBI's Precautionary Measures

SEBI is in the process of issuing an advisory to market intermediaries on the emerging risks associated with AI tools. The regulator is in close contact with stakeholders to address potential threats from AI-related vulnerabilities.