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Sebi Allows Launch Of Multiple Contracts In Same Commodity
The market regulator said that stock exchanges have suggested it to launch numerous contracts on the same commodity to cater to all significant value chain investors
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The Securities and Exchange Board of India (Sebi) released a circular on Thursday informing that it has allowed the stock exchanges to launch numerous contracts in the same commodity.
The action has been taken to encourage more participation of investors and it will come into force with immediate effect.
It was noticed that except for gold, silver and precious metals, the investors' participation, especially in metal contracts is limited due to the requirement of a single contract on a particular commodity.
The market regulator said that stock exchanges have suggested it to launch numerous contracts on the same commodity to cater to all significant value chain investors.
The commodity derivatives market is categorised into two groups namely as agricultural commodities and non-agricultural commodities.
So far, Sebi has suspended seven agricultural commodities including gram (chana), wheat, moong, non-basmati paddy, crude palm oil, mustard seeds and their derivatives and soya bean and its derivatives till December 2023 in a bid to rein in prices.