In a candid address at NSE’s IMC Capital Markets Conference, SEBI Chairman Tuhin Kanta Pandey revealed a regulatory roadblock. RBI and IRDAI are not on board with banks and insurers participating in commodity derivatives trading, citing deep-seated concerns.
‘Both have concrete reasons for their position, and they’re not positive about this segment right now,’ Pandey told the audience. Discussions with these regulators have yielded no encouragement for SEBI’s push.
Insurance firms, with their focus on long-horizon investments, face particular scrutiny. Pandey pondered the compatibility: how would volatile commodity bets fit into stable, long-term portfolios?
Pandey didn’t stop at sector mismatches. He raised alarms over tech-driven perils—algorithms outpacing controls, digital fraud hotspots, and AI’s dual role in defense and attack. ‘New-gen AI spots weaknesses but can exploit them at scale and speed,’ he cautioned.
On a constructive note, Pandey detailed KYC 2.0 advancements. CERSAI leads this unified KYC effort, integrating feedback from all corners. Post-SEBI’s talks, critical hurdles are mapped, targeting a rollout structure by July’s end.
Earlier at IMF-World Bank spring meetings, Pandey praised India’s capital markets as stable, strong, and competitive globally. Fueled by solid economic fundamentals and expanding investors, they stand tall—though commodity access for banks remains gated.
