Multi Commodity Exchange of India (MCX) has received an approval from market regulator Securities and Exchange Board of India (SEBI) for the launch of gold option contracts with 1 kg gold futures as the underlying asset. The exchange will launch it on Dhanteras i.e. on October 17 as the Hindu festival is considered auspicious for investment and buying gold.
The government had first allowed options in commodities in February 2015. Two years ago, the commodity regulator was merged with SEBI, paving the way for implementing options trading.
Besides, another exchange, the National Commodity & Derivatives Exchange (NCDEX), has also received approval from SEBI to launch options in guar seed, which is among the most traded commodities in the NCDEX portfolio.