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SEBI has allowed the stock exchanges to launch multiple contracts of a commodity to attract more participation by value chain industry.
SEBI endeavours to frame policies that encourage broader participation of investors in commodity derivatives market. The stock exchanges have represented to SEBI that due to requirement of single contract of a particular commodity, especially in metal contracts except for gold, silver and precious metals, the participation of investors is limited.
The stock exchanges have expressed their desire to launch multiple contracts of the same commodity to cater to all value chain participants, said SEBI.
Immediate implementation
The matter has been discussed in Commodity Derivatives Advisory Committee of SEBI. Accordingly, after due consultation, it has been decided that the stock exchanges may be allowed to launch multiple contracts of the same commodity, it added. The decision will come into force with immediate effect.
The exchanges are advised to make necessary amendments to the relevant bye-laws, rules and regulations for the implementation of the same, bring the provisions to the notice of the members of the exchange and communicate the status of the implementation to SEBI, it said.
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