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Listen to this article in summarized format The decision was part of a wider set of board approvals that also included an overhaul of portfolio manager regulations, a revamp of settlement proceedings rules, easier call record maintenance norms for research entities, a common advertisement code for certain regulated entities and expanded vault manager norms beyond electronic gold receipts. The approval on FPI participation is important for India’s non-agricultural commodity derivatives market, which includes contracts linked to commodities such as bullion, energy and base metal. Until now, FPI participation in the commodity derivatives segment was limited. FPIs could trade cash-settled non-agricultural commodity contracts and indices comprising such commodities. However, contracts involving delivery raised operational and tax issues because FPIs generally do not have a permanent establishment in India. The new framework allows FPIs to participate in non-cash-settled non-agricultural commodity derivatives, but with a clear delivery firewall. The board also approved an overhaul of portfolio manager regulations. The changes are expected to give the PMS industry more flexibility and widen the range of products that portfolio managers can offer. The approved changes including a new mutual fund-only PMS category, investment flexibility in pre-IPO securities and unlisted debt for discretionary PMS, and overseas investment flexibility for portfolio managers. The regulator also approved an overhaul of settlement proceedings regulations. The review is expected to simplify the settlement framework and make settlement terms more workable while retaining deterrence. The changes will be in how settlement amounts are calculated, how defaults are counted and how mitigating and aggravating factors are applied. Research entities also got relief, with Sebi easing norms for call record maintenance. This is likely to reduce compliance burden for research analysts and other research entities while retaining audit and accountability safeguards. The board also cleared a common advertisement code for certain Sebi-regulated entities. The proposed framework seeks to bring uniformity in advertising norms and reduce overlap across different entity-specific codes. Sebi had earlier proposed moving from prior approval to post-issue reporting in some cases, while also allowing brand-level or entity-level celebrity endorsements subject to conditions. Another approval expands the scope of vault manager regulations beyond electronic gold receipts. This suggests Sebi is looking to widen the vaulting framework as commodity-market infrastructure evolves beyond gold-linked products. (What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2025, Share Market on Budget 2025 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .) Subscribe to ET Prime and read the Economic Times ePaper Online.and Sensex Today. Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price (What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2025, Share Market on Budget 2025 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .) Subscribe to ET Prime and read the Economic Times ePaper Online.and Sensex Today. Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price
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