"It is decided that initially, on a pilot basis each exchange shall be allowed to launch options on futures of only one commodity that meets the criteria prescribed," the securities market regulator said in a circular.
"The commodity derivatives exchanges willing to start trading in options contracts shall take prior approval of SEBI for launching such contracts."
According to SEBI circular, only those commodities can be traded through the specified options which were amongst the top five 'Futures Contracts' in terms of total trading turnover value of the previous twelve months.
"The average daily turnover of underlying futures contracts of the corresponding commodity during the previous twelve months, shall be at least: Rs 200 crore for agricultural and agri-processed commodities, Rs 1,000 crore for other commodities," the circular pointed out.
(This story has not been edited by Social News XYZ staff and is auto-generated from a syndicated feed.)
Doraiah Chowdary Vundavally is a Software engineer at VTech . He is the news editor of SocialNews.XYZ and Freelance writer-contributes Telugu and English Columns on Films, Politics, and Gossips. He is the primary contributor for South Cinema Section of SocialNews.XYZ. His mission is to help to develop SocialNews.XYZ into a News website that has no bias or judgement towards any.
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