Commodity Derivatives: No New Contract Should Be Launched for 7 Commodities, Says SEBI
Moneylife Digital Team 20 December 2021
Market regulator Securities and Exchange Board of India (SEBI) has prohibited stock exchanges from allowing new contracts in commodity derivatives segments for seven commodities until further orders. 
 
In a direction, SEBI says, "In respect of running contracts, no new position will be allowed to be taken. Only squaring up of position will be allowed. These directions will be implemented with immediate effect and are applicable, for a period of one year."
 
The market regulator has banned new contracts in paddy (non-Basmati), wheat, chana, mustard seeds and its derivatives, soya bean, crude palm oil, and moong
 
Derivative contracts for chana and mustard seeds and its derivatives have already been suspended, vide SEBI press release dated 16 August 2021 and 8 October 2021, respectively. (Read: SEBI Issues Directions to NCDEX Regarding Trading in Mustard Seed Contracts)  
 
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