India’s Securities and Exchange Board (SEBI) and the Reserve Bank of India (RBI) are considering allowing commercial banks to trade in commodity derivatives to enhance market liquidity. SEBI Chairman Tuhin Kanta Pandey confirmed discussions with the RBI to develop a framework that enables “prudential access” for financial institutions. If implemented, this would mark another step in easing capital deployment restrictions for lenders. It follows the RBI’s October announcement permitting banks to finance mergers and acquisitions, a move aimed at energizing India’s USD 40 billion-plus deals market.