Mutual funds participation in commodity derivatives allowed with governance, exposure caps, valuation and disclosure obligations. Mutual funds are permitted to participate in exchange traded commodity derivatives (ETCDs) subject to exclusions for sensitive commodities, prohibition on holding physical goods except gold via Gold ETFs with a thirty day disposal requirement, prohibition on net short positions when combining physical and ETCD positions, scheme eligibility limited to specified hybrid schemes and Gold ETFs, requirement to treat participation as a change in fundamental attributes for existing schemes with a minimum thirty day exit option, AMC governance and valuation policies, investment exposure caps including cumulative limits for gold instruments, and specified disclosure and exchange implementation obligations.