Letters: Regulation required

With reference to the editorial, “Proceed with caution” (March 23), like other financial derivatives, commodity derivatives play a crucial role in both price discovery and deepening of the underlying spot market. Apart from adding liquidity to the market, these derivatives also help in managing and hedging risks.
 
Against this backdrop, the Securities and Exchange Board of India’s (Sebi) plan to expand eligible participant categories for commodity derivatives market as well as the bouquet of trading products is certainly welcome.
 
In the past, commodity derivatives were made the scapegoat for supply-side issues that led to skyrocketing of prices of