Commodity Options

Silver trade: Buying on dips still favourable, may continue to rise

Slightly softer than expected inflation data from University of Michigan, which was released Friday, continued to aid in commodities recovery

Silver in uptrend as US yields dip, may hit Rs 85,000-mark on MCX

Silver outlook by Sharekhan: The recovery in Silver prices has been driven largely by increasing probability of rate cuts by the US Federal Reserve

Rising commodity prices risk raising costs for India's infra plans

Commodity super-cycle may upset plans for national infrastructure pipeline, raise expenses for Railways

Settlement rules on commodity options soon

The securities and exchange board of India has today approved trading in commodity options. While actual trading in options will take some time to start as first finance ministry will have to amend the relevant rules which can be done by issuing a notification and the regulator board has found way out which will not require to go to parliament. The existing SCR act gives all powers to the Sebi to permit options. However options settlement will be much more complex than equity options because in commodities, ''options will devolve or expire in futures.''Expiry of option, as the Chairman, Ajy Tyagi stated, "options will be in futures of the same commodity and not cash settlement like in equities." However as he said the details for this are being worked out but according to sources, once an option expires in futures relevant margins applicable to futures will also apply to options. On expiry if buyer of the option decides to continue his position, he will have to pay standard margins ...

Sebi to finalise norms for options in commodities soon

However, regulator is treating issue with caution; experts suggest letting banks act as aggregators