MCX - FPI Participation In Commodity Derivatives To Be Positive: Motilal Oswal

BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. .Motilal Oswal Report.The Securities and Exchange Board of India has allowed foreign portfolio investments to participate in cash-settled non-agricultural commodity derivative contracts through the exchange-traded commodity derivative market. Multi Commodity Exchange of India Ltd. contracts eligible for participation are crude oil futures and its variants, natural gas futures and its variants, and crude/natural gas options and Energy Index futures. With a 98%/99% correlation of MCX Crude/MCX Natural Gas with NYMEX WTI crude oil/Nymex Henry Hub Gas prices, FPIs will find MCX products as a proxy for global benchmarks in crude oil and natural gas. The participation of FPIs in ETCDs is expected to enhance liquidity and market depth and promote efficient price discovery. The transition to Tata Consultancy Services Ltd. software will be vital for MCX to scale up FPI activities in commodity derivatives. MCX expects to complete the transition by June 2023. While we are upbeat on the long-term potential of volumes from FPIs, we do not see a meaningful contribution in the near term..Click on the attachment to read the full report:.GSK Pharma Analyst Meet Takeaways - A Mixed Bag: Motilal Oswal.DISCLAIMERThis report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

MCX - FPI Participation In Commodity Derivatives To Be Positive: Motilal Oswal

FPI move is a long-term volume driver.

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