After the Finance Minister Arun Jaitley in his budget speech made the call for integrating the bourses for securities and commodities trading, SEBI has taken step in this direction and plans to come up with a universal exchange.
A universal exchange offers commodity as well as securities trading on one platform. Such exchanges will no longer have to put in place a separate entity for providing commodity trading services. In October this year, the capital market watchdog has started with preliminary work in this area by beginning to integrate market intermediaries including stock brokers.
Mahalingam, a whole-time member of SEBI on the sidelines of India commodity day organised by Multi Commodity Exchange Ltd said, "A legal framework for universal exchanges would be devised in the next six months that will enable the national exchanges to trade in commodity and equity".
He added, "Real progress will be achieved if they (FPIs) are participating in domestic commodity markets with prudent risk management measures".
Also, the market regulator is working in full swing to change the view in respect of commodities being a risky asset for investment.