New Delhi, Sept. 24 -- The Securities and Exchange Board of India (Sebi) board has approved a proposal to allow foreign portfolio investors (FPI) into physically-settled non-agri commodities, along with a slew of other measures, at its board meeting on Thursday.

Foreign investors would now be allowed to trade in non-agricultural index derivatives because such contracts are cash settled, regardless of the nature of their underlying commodities. For physically settled non-agricultural commodities, FPIs would have to square off positions before the start of the tender or staggered delivery period, three days before expiry.

FPIs currently have access to non-agricultural commodity derivatives that are cash settled, while bullion and base-met...