BSE became the first stock exchange in the country to launch commodity derivatives contract. Till date, commodity derivatives contract are available only on MCX and NCDEX, the two specialised commodity derivatives exchange in the country.
Background:
In December 2017, the Securities and Exchange Board of India (SEBI) announced that from October 1, 2018, the country would have a unified exchange regime wherein stock exchanges would be allowed to offer trading in commodity derivatives.
As per the amendments in Securities Contracts (Regulation) (Stock Exchanges and Clearing Corporations) Regulations there would be no separate category of 'Commodity Derivatives Exchanges' from October 1, 2018. i.e. all exchanges will be known as stock exchanges and there will be no commodity exchanges.
Then in September 2018, India’s leading exchanges, BSE and NSE received SEBI'S approval to launch the commodity derivatives segments from October 1, starting with non-agriculture commodities like metals.
Recent development:
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 exchange in the country.
The launch of commodity derivatives platform on the BSE will help in efficient price discovery, reduce timeline and make it cost-effective.
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