In a major reform, Sebi allows stock exchanges to launch 'options on goods'

Sebi has also permitted exchanges to allow option on goods and options on futures with the same underlying commodities simultaneously

The Securities and Exchange Board of India (Sebi) on Thursday took a step towards major reform in commodity derivatives and allowed stock exchanges to launch ‘option in goods’ in their commodity derivatives segment. This is in addition to ‘options on commodity futures’. Norms for options on goods are liberal compared to those on options on futures.

As of now commodity options are permitted based on futures of that commodity as underlying. This means that on expiry of options, it devolves in futures or every option trade if not squared off on expiry in futures. This assumes significance when option trader