Commodity exchange, National Commodity & Derivatives Exchange (NCDEX) has received approval from markets regulator Securities and Exchange Board of India (SEBI) to launch options contracts in four new commodities.
The exchange is expected to launch four new contracts namely, guargum, soybean, refined soy oil and chana within two weeks. NCDEX said that for guargum, soybean and chana, the first contracts will be launched with November 2018 expiry whereas, the first refined soy oil options contract will be expiring in December 2018.
Besides, the exchange has modified the expiry date of the options contracts for these commodities as compared to the existing options in Guarseed. Contracts for the newly added commodities will expire on 10th of the underlying futures expiry month. Launch of options in the four commodities will provide an additional tool for risk management to the value chain participants, including farmers, FPOs, traders, processors etc.