The Securities and Exchange Board of India (Sebi) is actively engaging with the Indian government to address significant challenges in the commodities market related to the Goods and Services Tax (GST). Sebi chairman Tuhin Kanta Pandey highlighted the cumbersome process requiring intermediaries to obtain separate GST registrations in every state where delivery centers are located. To alleviate this, Sebi has proposed an Integrated Goods and Services Tax (IGST) mechanism, which would treat deliveries as inter-state supplies, allowing for a seamless tax credit flow and centralized compliance. This change could potentially increase participation from institutional investors, particularly as the commodities market expands with innovations like doorstep delivery of gold. Additionally, Pandey noted that concerns from the Reserve Bank of India (RBI) and the Insurance Regulatory and Development Authority of India (IRDAI) have limited participation from banks and insurance companies in commodity derivatives. Sebi is also addressing emerging risks associated with AI models and is preparing an advisory on vulnerabilities in the market. Furthermore, the CKYC 2.0 initiative aims to streamline Know Your Customer (KYC) processes across the financial system, with updates expected by July.