COMMODITIES SUITABLE FOR OPTIONS

Sebi has not spelt out which commodities or how many commodities would be allowed for options trading. However, a working group is understood to have recommended to Sebi that there should be a pilot-like launch of options permitting one or two each in agri and non-agri segment. Market experts have proposed options in mustard seed, soya bean, soya oil and

guar. In the non-agri segment, gold and crude oil could be considered

Settlement

Experts say that for agri commodities, farmers should have the choice of delivery-based settlement along with cash-settled options