He added that SEBI will not pursue the matter further with the RBI and IRDAI, noting that commodity derivatives do not align well with the long-term investment approach typically followed by insurance firms.

The remarks signal a shift from SEBI's earlier stance. In September last year, the regulator had said it would engage with the government to enable banks and pension funds to participate in commodity markets as part of efforts to deepen liquidity and strengthen the segment.

Pandey also noted that India's pension fund regulator had examined the possibility of allowing pension funds to invest in commodity derivatives, though he did not disclose whether a final decision had been taken.

MCX, India's largest commodity exchange and the country's first listed bourse in the segment, provides a trading platform for commodities such as precious metals, crude oil and natural gas. Hopes of broader institutional participation have been a key driver of the stock's gains.

The latest regulatory stance, however, signals a more cautious approach, tempering near-term expectations of fresh liquidity inflows into the commodity derivatives market.

MCX is India's largest commodity derivatives exchange, with around 98% market share in commodity futures. It offers trading in a diverse range of commodities, spanning multiple segments including bullion, energy, metals and agri commodities, as well as sectoral commodity indices.

The company reported 150.63% year-on-year (YoY) surge in consolidated net profit to Rs 401.12 crore in Q3 FY26, compared with Rs 160.04 crore in Q3 FY25. Income from operations jumped 120.85% YoY to Rs 665.62 crore for the quarter ended 31 December 2025.

The company's board will consider Q4 results on 8 May 2026.

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