SEBI has vide circular dated 26th September, 2017 allowed Foreign Portfolio Investors (FPIs) to participate in commodity derivative contracts traded in stock exchanges in International Financial Services Centre (IFSC) subject to conditions, such as
a) Participation would be limited to derivative contracts in non agricultural commodities only;
b) Contracts would be cash settled on settlement price determined on overseas exchanges;
c) All transactions shall be denominated in foreign currency only.
SEBI circular can be found here i.e. http://www.sebi.gov.in/legal/circulars/sep-2017/participation-of-foreign-portfolio-investors-fpis-in-commodity-derivatives-in-ifsc_36081.html