NCDEX to seek SEBI nod for options in goods for chana, guar, soybean

Tuesday, Jul 21, 2020


By Roshni Devi and Kavita Desai


MUMBAI – The National Commodity & Derivatives Exchange will seek the Securities and Exchange Board of India's approval to launch options in goods contracts for chana, guar seed, guar gum and soybean, after it discontinued options trade in futures contracts, an exchange official said.


"We are working to convert them (options in futures) into options in goods… There was not much liquidity in these options on futures contracts so market participants are not that worried. That's why we are moving from futures to goods," an exchange official said.


For settlement of options in futures contract, options devolve into futures first, and then futures are settled. In options in goods contracts, the basis for the settlement is the underlying spot market price and the contract is settled through compulsory delivery.


"Options in goods is easy because the trader can directly take delivery without having a position in the futures contract," the official said.


The exchange has already received the regulator's nod to launch options in goods contracts for mustard seed, wheat and maize, which will be available for trading from Monday.


He added that based on the response to these options in goods, the exchange will consider offering options in goods in other commodities too.  End


Edited by Mainak Moitra


Cogencis Tel +91 (22) 6619-0000

Send comments to

This copy was first published on the Cogencis WorkStation

© Cogencis Information Services Ltd. 2020. All rights reserved.

Other News

Top realtors take up stuck projects to boost cash flows, sales

Informist, Wednesday, Aug 4, 2021 By Janaki Krishnan  MUMBAI – Top real estate developers, lured by the prospects of assured cash flows and sales visibility that can boost both their toplines and profits, are aggressively pursuing joint ventures with developers whose projects have become stuck due to the lack of liquidity, labour and timely approvals.    Called the asset-light model, joint development projects have […]

INTERVIEW:Monetary policy hostage to health policy, says Nomura Varma

Informist, Wednesday, Aug 4, 2021 –Nomura's Varma: MPC should start focusing more on inflation now–High inflation expectations weaken view CPI spike transitory By Pragya Srivastava and Siddharth Upasani NEW DELHI – India's monetary policy is hostage to the country's health policy, with the Reserve Bank of India being forced to continue with its expansionary policy for far too […]

RBI warns against fake offers to sell/buy old banknotes, coins

Informist, Wednesday, Aug 4, 2021 NEW DELHI – The Reserve Bank of India has advised the public to exercise caution and not fall prey to elements using its name through fictitious claims and fraudulent offers to extract money, the RBI said in a release today. The RBI said that it does not deal in transactions related to buying and […]