Securities and Exchange Board of India (SEBI), has approved the launch of Gold Mini, Guarseed and Guargum future contracts on commodity derivatives segment of Bombay Stock Exchange (BSE). These future contracts are monthly compulsory deliverable contracts with lot size of 100 grams, 10 metric tons and 10 metric tons, respectively.
Recently, SEBI had approved BSE's move to introduce weekly futures and options contracts on the S&P BSE BANKEX. BSE also had entered into an agreement with various agricultural premier associations and warehouse service providers in India for the growth and development of commodity derivatives markets in the agricultural complex. BSE commenced trading in gold and silver contracts on October 1, 2018, to mark its entry into the commodity derivatives segment and become the country’s first universal stock exchange with all asset classes including equity, mutual funds, currency and commodity in its portfolio.
As BSE had waived the transaction charges for the first year on commodities market operations, the commodity trading at BSE has gained momentum and has trimmed an enormous cost for hedgers. Besides, the futures trading in gold and silver contracts is gaining impetus with around 10% to 15% of the same current month contracts offered by other exchanges.
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