FUTURES ON COMMODITY INDICES

About:

• SEBI in a circular said, the stock exchanges, willing to start trading in futures on commodity indices, are required to take prior approval for launching such contracts.
  
  
• It has directed the stock exchanges to submit proposal with contract specifications and risk management framework for approval before launching any futures contract on an index.
  
  
• The recent decision is part of larger efforts to deepen the participation of institutions in the derivatives segment.
  
  
• The SEBI directives are in line with recommendations of Commodity Derivatives Advisory Committee.