Following recommendations by its advisory committee Commodity Derivatives Advisory Committee (CDAC) Sebi has proposed to allow category-3 Alternative Investment Funds typically known as hedge funds in commodity derivatives. Market players, and sources involved in the discussion process said that entry of hedge funds, when implemented, will help bring liquidity in commodity futures and options. The move is a beginning to bring institutional investors in commodity derivatives. However, initially they will be allowed only in non-agri commodities. In agri commodities, still there are possibilities of government interventions and sensitivity of the segment.Hedge funds, be they local or overseas, have cheap funds...