INSUBCONTINENT EXCLUSIVE:
(Sebi) on Tuesday permitted stock exchanges with commodity derivative segment to introduce futures on commodity indices.The market regulator
said that it has now decided "to permit recognized stock exchanges with commodity derivative segment to introduce futures on commodity
indices".Sebi has already permitted commodity options in Indian commodity derivatives markets.The recognized stock exchanges with commodity
derivative segment willing to start trading in futures on commodity indices shall take prior approval of Sebi for launching such
contracts.Exchanges will have to submit data of the index constructed at least for the past 3 years, along with data on monthly volatility,
roll-over yield for the month and monthly return while seeking approval from Sebi, the circular said.Sebi further said that the constituent
futures contracts should be in existence on the respective exchanges for at least previous twelve months.The market regulator also said that
the contracts should have traded for at least 90 per cent of the trading days during the previous twelve months.The average daily turnover
of the constituent futures contracts during the previous twelve months should at least be Rs 75 crore for agricultural and agri-processed
commodities and Rs 500 crore for all other commodities, the circular added.
