Securities and Exchange Board of India, SEBI, today allowed options trading in commodities to deepen the market but will permit each exchange to launch options on futures of only one commodity initially. It has asked bourses to follow robust risk management measures.
Putting in place strict eligibility criteria, SEBI said, options could be launched on futures contract of only those commodities that are among the top five in terms of total trading turnover value of previous 12 months. Besides, the average daily turnover of underlying futures contracts of such a commodity in past one year should be at least 200 crore rupees for agricultural and agree-processed commodities, and 1,000 crore rupees for other commodities.
