SEBI chief UK Sinha bids goodbye; confirms AMCs to be allowed to invest in commodities

Market regulator Securities and Exchange Board of India (SEBI) is likely to let mutual funds invest in commodities in the next six months.

Outgoing SEBI chairman UK Sinha confirmed completing two initial discussions with asset management companies on mutual fund trading of commodities. Sinha said that the trading will materialise within a few months.

SEBI is also expected to come up with set rules and regulations for exposure limit in commodities along with the list of commodities that will be available for mutual fund investments. Mutual funds are permitted to trade in equity derivatives depending on their exposure to the particular stocks in their portfolios.

Sinha, who handed over the charge to his successor Ajay Tyagi, admitted that his tenure witnessed harsh actions against violators and stressed on providing uniform treatment and competition amongst investors.

In his last press release, Sinha expressed his only significant regret of not being able to launch any Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs) during his tenure.