Pandey, speaking on May 4, 2026, on the sidelines of the IMC Capital Markets Conference at the National Stock Exchange, said the two regulators had explained the basis for their position and linked it to the duration characteristics of their supervised entities. “They had their rationale that at this moment, they do not feel it is the right time because these are long term – the insurance is long term – so how will the commodity derivatives help,” Pandey said, as reported by Business Standard. He added that Sebi’s engagement with the other regulators had not led to agreement on expanding access. The market regulator “did not get a positive response” on the issue, he said, referring to “certain concerns” raised by the banking and insurance supervisors. For insurers looking at new options for asset-liability management, hedging, or portfolio diversification, the remarks suggest that commodity derivatives will remain outside the permissible investment universe for now, despite periodic industry interest in broader derivatives usage.
