June 19, 2019

Capital markets regulator SEBI today permitted stock exchanges with commodity derivative segment to introduce futures on indices.


  • 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.