Sebi allows commexes to introduce options

MUMBAI: The Securities and Exchange Board of India (Sebi) on Wednesday allowed commodity exchanges to launch options contracts for trading, with an aim to enhance

MUMBAI: The Securities and Exchange Board of India (Sebi) on Wednesday allowed commodity exchanges to launch options contracts for trading, with an aim to enhance liquidity and broad base participation in the commodity market. At present, only “futures” contracts based on individual commodities are traded on commodity bourses. In options trading, a buyer has the right, but not the obligation, to buy or sell a future contract at a specific price and for a specific period of time. Every exchange will need a prior Sebi approval for launching “options”. The detailed norms will be released by the regulator later.

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