Banking, Insurance Regulators Not In Favour Of Commodity Derivatives Entry: SEBI Chairman

Speaking at IMC Chamber of Commerce and Industry’s capital markets conference, Pandey said both the Reserve Bank of India (RBI) and Insurance Regulatory and Development Authority of India (IRDAI) have reservations about permitting banks and insurance companies to invest in commodity derivatives, adding that the regulators have ‘valid rationale’ for their stance. SEBI Flags GST Hurdles In Gold Deliveries He also said GST-related issues are restricting physical delivery in commodity derivatives, including gold. To address this, SEBI has approached the GST Council through the Finance Ministry and proposed an Integrated GST (IGST) mechanism instead of state-level GST. Pandey said warehouses involved in commodity deliveries are often located across multiple states, requiring registrations in each state under the current framework, making the process cumbersome, reported Times Of India. One Nation, One KYC Framework By July The SEBI chief also said the government is expected to introduce a ‘one nation, one KYC’ framework under the Central Registry of Securitisation Asset Reconstruction and Security Interest of India (CERSAI) by July this year. Earlier, Finance Minister Nirmala Sitharaman had asked SEBI to take the lead in implementing a simplified KYC system across the financial sector. Pandey also said the regulator will soon issue an advisory to market intermediaries regarding risks arising from artificial intelligence-related vulnerabilities and preparedness measures. (KNN Bureau)