NCDEX proposes hybrid options trading

Asks Sebi to permit a hybrid of American- and European-style options, which it calls Indian options

With options trading in commodities about to start, the National Commodity and Derivatives Exchange (NCDEX) has asked the Securities and Exchange Board of India (Sebi) to allow derivatives that have elements of the European and American systems.

However, Sebi will approve European-style options, in which the date of expiry is pre-determined and in sync with the expiry of the relevant futures contract. The regulator has conveyed this to market participants.

The National Commodity and Derivatives Exchange (NCDEX), which does mostly agri commodities trading, has asked Sebi to permit a hybrid of American- and European-style options, which it calls 'Indian options'. In American-style