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The Bombay Stock Exchange became the first stock exchange in the country to launch commodity derivatives contract in gold and silver. Till date, commodity derivatives contract are available only on MCX and NCDEX, the two specialised commodity derivatives exchanges in the country.
“We have launched gold and silver derivatives contract and have applied for launching crude oil and copper contracts with SEBI. We will subsequently launch more agri commodities,” the BSE Managing Director and Chief Executive Officer, Ashishkumar Chauhan, told reporters.
He said the launch of commodity derivatives platform on the BSE will help in efficient price discovery, reduce timeline and make it cost-effective. “The bourse also promises a user-friendly platform with robust risk management system and wider market penetration,” Chauhan said.
SEBI whole-time member S K Mohanty said, “We have put all rules and regulations and every exchange is equal to us and no exchange will have any distinctive or differential treatment from the regulator. Today onwards, all exchanges will be known as stock exchanges and there will be no commodity exchanges.”
Mohanty called for the launch of more deliverable contracts in agri-commodities, which can provide good price discovery platform and help farmers and agri producing organisations, who can participate and take the benefit of price discovery and price risk management.
He said despite the presence of about 40-plus contracts, commodities derivatives segment is still at a very nascent stage. Out of the total exchange-traded derivatives across the globe, the size of commodity derivatives is only 22 per cent, out of which India has a negligible share of 5-6 per cent.
BSE has already registered 150 trading members and 27 clearing members for its commodity derivatives segment. The exchange also waived off transaction charges for the first year in the commodity derivatives segment. Commodity trading will be conducted from 10.00 am to 11.30 pm from Monday to Friday.
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