SEBI allows BSE, NSE to introduce commodity derivatives starting October 1

India’s major stock exchanges, Bombay Stock Exchange and National Stock Exchange have got permission from the security market regulator, SEBI to begin commodity derivatives segment from October 1, 2018.

Bombay Stock Exchange said that it will launch commodity derivatives on October 1 and will concentrate on non-agriculture commodities like metals.

In a different press note, NSE too confirmed that SEBI has given clearance to introduce commodity derivative segment.

Presently, BSE offers trading in segments like equity, equity derivatives, and currency derivatives. The Securities and Exchange Board of India (SEBI), in December 2017 notified that India would have a unified exchange regime. In this, the stock exchanges will be permitted to offer trading in commodity derivatives.

As per a report by Moneycontrol, BSE said it has received “another feather in its hat by getting Sebi’s approval to launch commodity derivatives segment from October 1, 2018”. “BSE will begin trading in commodity derivatives with non-agriculture commodities like metals initially, followed by agri commodities subsequently,” it added.

According to the world’s fastest exchange, launching commodity derivatives will help to discover efficient price, reduce timelines, enhance cost-effectiveness and penetrate a wider market.

Reportedly, the exchange is likely to conduct a mock trading session in a live market on Saturday. One similar session has already been conducted by BSE earlier this year.

National Stock Exchange has also conduction one such session on September 1.


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