The board of markets regulator Sebi approved a proposal to allow options trading in the commodity derivatives in at its meeting here.
It is a "very big step towards further deepening the commodities derivatives market", said Ajay Tyagi, Chairman of the Securities and Exchange Board of India (Sebi).
"To enable the commodity derivatives exchanges to organise trading of options, the board, after undertaking due public consultation process, has approved a proposal to amend the Securities Contract Securities Contract (Regulation) (Stock Exchanges and Clearing Corporations) Regulations, 2012," Sebi said.
Finance Minister Arun Jaitley in Union Budget 2016-17 had announced permitting new products in the commodity derivatives market.
Disclaimer: No Business Standard Journalist was involved in creation of this content