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Corporate Laws Central Ministry of Finance Securities and Exchange Board of India Act, 1992

Direct Market Access (DMA) to SEBI registered Foreign Portfolio Investors (FPIs) for participating in Exchange Traded Commodity Derivatives (ETCDs)

10-May-2023 | SEBI/HO/MRD/MRD-PoD-1/P/CIR/2023/68

Securities and Exchange Board of India has issued Circular regarding Direct Market Access (DMA) to SEBI registered Foreign Portfolio Investors (FPIs) for participating in Exchange Traded Commodity Derivatives (ETCDs), effective from 10th May 2023 By virtue of the circular, SEBI has allowed stock exchanges to extend DMA facility to FPIs for participation in ETCDs subject to the following conditions: i. Stock exchanges/brokers shall adhere to the provisions stipulated in SEBI Circulars regarding Direct Market Access, institutional investors to use DMA through the Investment Managers which include procedure for application for DMA, operational specifications, Client authorization and broker-client agreement, risk management, etc. ii. The provisions of Circular allowing FPIs to participate in ETCDs shall remain applicable. ii. The stock exchanges are advised to take steps to make necessary amendments to the relevant byelaws, rules and regulations for the implementation of the circular, Bring the provisions of the circular to the notice of the members of the stock exchange and also disseminate the same on their website and communicate to SEBI the status of implementation of the provisions of this circular in the Monthly Development Report.

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