| Banks are not allowed to participate in the Indian commodity derivatives markets. Such non-participation of the most important financial institution of the country banks is an important missing link in the evolution of this market in India.
While much has been talked about in various contexts recommending banks participations, the latest Report of a Finance Ministry committee suggesting steps to fulfill the objectives of price discovery and risk management in the commodity derivatives market, says:
One way to reduce the cost of capital for the commodities trader is, to make banks
an integral part of trading in commodity derivatives...............................................Full Article: Source
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