Mumbai, May 4 -- Speaking at the IMC Capital Markets conference, Pandey, who heads the Securities and Exchange Board of India, said the Reserve Bank of India and the Insurance Regulatory and Development Authority of India are not inclined to allow banks and insurance companies to invest in commodity derivatives.

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 effor...