SEBI approves commodities trading by mutual funds

The Securities and Exchange Board of India(SEBI) has given the nod to let mutual funds invest in commodities. But this will happen only after six months. SEBI is holding discussions with asset management companies on this matter. Right now, mutual funds are trading only on equity derivatives. SEBI will have to frame new rules for this new decision of commodity trading by mutual funds. SEBI will decide the exposure limit in commodities and the commodities in which the mutual funds can invest.

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