SEBI will take all necessary steps for deepening of the commodity derivatives market, said SEBI whole time member S.K. Mohanty.

Of the 3Ps required to build any market-- Policy, Product and Participants-- the first two were already in place and the eco-system should ensure education and awareness to promote participation, Mohanty said, addressing a conference on 'Institutional Participation - Ushering a New Era in Commodity Derivatives Market' organised by FICCI jointly with MCX Investor Protection Fund.

He added that the regulatory ecosystem in India’s commodity derivatives market was at par with other developed markets.

Attributing this to the positive steps taken by SEBI over the last three years, Mohanty said SEBI has done reasonably well on this front.

"Mutual fund participation will be a game changer in the commodity derivatives market and will open a gateway for the ETF segment," the regulator said.

"With the participation of institutional investors such as mutual funds, there will be information-based trading as against random trading", he explained and shared his optimism about the positive role the institutional players can play in making the market more robust, liquid and inclusive.

Mrugank Paranjape, Chairman, FICCI National Committee on Commodities and MD & CEO, MCX, said, "Institutional participation has been a long pending need for the growth and development of the commodity derivatives market.