Letter to BS: Niti's recommendations on derivative mkts forward looking

Although the Sebi has great experience in overseeing the capital markets for more than two decades

The need for integration of spot and derivative markets in commodities has for long been discussed in policy and academic circles. The recent report of the Niti Aayog under the chairmanship of Ramesh Chand offers justification for such integration and proposes operational and legal guidelines based on archival information and a few empirical studies conducted in the concerned space. The Committee’s recommendations are indeed optimistic and forward looking, but the implementation will take longer than expected due to the requirement of regulatory convergence among several market infrastructure institutions. The proposal to make the Securities and Exchange Board of India (Sebi)