The National Commodity and Derivatives Exchange (NCDEX) is all set to launch the 'Options in Goods' contracts on rapeseed, wheat and maize from July 27, 2020. The contracts of the three commodities, expiring in October and November 2020, would be available for trading from July 27 onwards.
Options in Goods provide a settlement mechanism where contracts settle on spot price and all open positions convert into physical settlement at expiry. With Options in Goods, the contracts will be completed only through compulsory delivery on the day of the settlement. The option contracts would have the same quality specifications, delivery centres, final settlement price methodology, trading hours and minimum tenor as the corresponding futures contracts.
NCDEX has become the first exchange in the country to launch Options in Goods contracts in agri derivatives space after the permission given by the regulator Securities and Exchange Board of India (SEBI). SEBI in January 2020 had allowed exchanges to launch 'Options in Goods' in their commodity derivatives segment.
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