MUMBAI, Dec. 20 -- The Securities and Exchange Board of India (Sebi) will soon set up a working group to review the non-agricultural commodity derivatives market, Sebi chairman Tuhin Kanta Pandey said on Saturday.

Pandey said expert groups constituted by the regulator, focused on agricultural commodities, are examining whether the regulatory framework governing margins, position limits, and delivery and settlement mechanisms can be optimized without compromising market integrity. "Their recommendations will assist us in taking necessary developmental measures after due consultation with all stakeholders."

The move comes at a time when India's commodity derivatives market is witnessing rapid expansion. Pandey noted that commodity markets...