Securities and Exchange Board of India (SEBI) has added six new products to the list of commodities on which derivative contracts can be launched and traded. The new items -- diamond, tea, eggs, cocoa, pig iron and brass -- have taken the total number of permitted commodities on the notified list to 91.
The government has notified a consolidated list of 91 commodities, on which derivative contracts can be launched and traded on the exchanges, in consultation with SEBI and on suggestions of an expert committee headed by NITI Aayog member. The committee had suggested a total of eight additions to the list but only six have been included. The exchanges, investors and other market participants have been demanding options trading as also new products for a long time.
Further, SEBI has also allowed options trading on exchanges in a major push to deepen the commodity derivatives market. The regulator has not yet decided on the number of commodities to be allowed for option trade and a decision in this regard will be taken soon.
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