Faced with legal difficulties in allowing options trading in commodities, the Securities and Exchange Board of India (Sebi) has decided to let in new institutional players in commodity futures to improve the depth of the market.
Although the regulator had floated a discussion paper to allow options in commodities first and then let in more players, it seems to come up against a legal snag.
Sources close to the development said that “till the legal framework for allowing options is cleared, Sebi will allow new players. Indian and overseas private equity funds and venture funds registered with Sebi under category