Pursuing reforms in the commodities derivatives market, Sebi today said it is committed to allow options trading in the segment as well as look at permitting institutional participation in this market in a phased manner.
Finance Minister Arun Jaitley, who addressed Sebi's board, said that there is a need for further development of commodity markets in both the spot and derivatives segments. The regulator apprised him about integrating the two segments.
The Union Budget had a proposal to look into integrating these two segments for the commodity markets.
The Securities and Exchange Board of India (Sebi) has announced to initiate consultation with various stakeholders to facilitate integration between commodity spot markets and derivatives markets.
Besides, Sebi would allow institutional investors in commodity derivatives markets in phased manner after taking into consideration views of all the stakeholders.
When asked about allowing options in the commodity derivatives segment, Sebi Chairman U K Sinha said, "we are committed to doing it".
The regulator also announced to design a system of risk based supervision for commodity brokers.
As part of efforts to deepen the nascent commodity derivatives market, Sebi is committed to allow options trading in commodity bourses.
Last month, Sebi came out with draft norms to allow options trading in commodity bourses. The regulator had sought comments from public on the draft norm till January 31.
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