Sebi nod to launch commodity derivatives at BSE, NSE from Oct 1

NEW DELHI: Leading stock exchanges BSE and NSE have received markets regulator Sebi’s approval to launch commodity derivatives segment from October 1.

BSE will enter the segment with non-agriculture commodities like metals initially followed by agri commodities subsequently.

The Securities and Exchange Board of India (Sebi)

last December, announced that from October 2018, the country would have a unified exchange regime wherein stock exchanges would be allowed to offer trading in commodities derivatives.

In a statement, 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 exchange, its commodity derivatives platform will help in efficient price discovery, reduction in timelines, cost effective, userfriendly, robust risk management system and wider market penetration.

In a separate circular, NSE too informed that it has got Sebi’s clearance for introducing the commodity derivatives segment from October 1.

Further, NSCCL has also received clearance from the regulator for carrying out clearing and settlement of trades executed in the commodity derivatives segment on NSE.

At present, the exchanges offer trading in equities, equity derivatives as well as currency derivatives.

Besides, BSE will conduct mock trading in live environment for the segment on Saturday. Larger rival NSE had conducted a similar session on September 1.