Skip to content
Free updates Login
SSCBankingNABARD / RBI

PFRDA-SEBI Talks on Pension Funds in Commodity Derivatives

22 September 20251 min read
BANKING & FINANCEPFRDA-SEBI Talkson Pension Fundsin CommodityDerivatives22 September 2025safalsetu.com

Why in the news

PFRDA opened discussions with SEBI on allowing pension funds into selected commodity derivatives.

Key facts

  • Aim: exposure to gold, silver and possibly other metals for steady long-term returns.
  • Excluded: agricultural commodities may stay off-limits owing to higher vulnerabilities.
  • Needed: fresh PFRDA investment guidelines and board approval.
  • SEBI signals: interest in admitting banks, insurers and pension funds to non-agri commodities; a working group may help India go from price taker to price setter.
  • Insurance regulators may be cautious.

Significance

  • More investment avenues for long-term institutions and better price discovery in non-agri goods.

Exam angle

  • Pension regulator: PFRDA. Metals, not farm goods, are the focus.

Test yourself

1. Which regulator was in talks with SEBI about pension fund access to commodity derivatives?

PFRDA was discussing the matter with SEBI.

2. Which commodities may stay off-limits for pension funds under the discussed plan?

Agricultural commodities may remain excluded owing to higher vulnerabilities.

3. What shift for India could a working group on non-agri commodities help achieve?

It aims to help India move from price taker to price setter.

This topic is part of Daily Current Affairs 20 September 2025 (12 topics).

All topics of the dayDay quizSeptember 2025

Read more