SEBI said trading in futures contracts of soybean and its derivatives, crude palm oil, wheat, paddy rice, gram, moong and mustard will continue for one year.
Capital markets regulator Sebi has extended the suspension of futures and options trading in seven agricultural commodities, including wheat and moong, for another year till December 2023 in a bid to rein in prices.
Other agricultural commodities suspended by SEBI include paddy (non-basmati), gram, crude palm oil, mustard seed and their derivatives and soybean and its derivatives.
The Securities and Exchange Board of India (Sebi) last year ordered the suspension of futures trading in key agricultural commodities for a year as the world's largest importer of vegetable oils and a major producer of wheat and rice grapple with food inflation. was struggling to do.
Annual retail inflation fell below the central bank's upper tolerance level for the first time in November this year amid a modest rise in food prices.
"The suspension of trading in the above contracts is further extended for one more year beyond December 20, 2022, i.e. up to December 20, 2023," Sebi said in a statement on Wednesday.
The suspension allows liquidation of existing positions in these commodities, but no new futures trading in them is permitted for one year.
Earlier this month, the Commodity Participants Association of India (CPAI) urged the government and Sebi to allow exchanges to resume trading in these seven agriculture derivative contracts.
In its letter to the finance ministry and SEBI, the association had said that prolonged restrictions are detrimental to the Indian commodity market ecosystem and seriously damage the perception about India's ease of doing business environment.
During the last one year, the prices of some of these commodities have remained below or around the MSP, and several studies have concluded that commodity prices are mainly governed by supply and demand factors, and trading on exchanges. There is no impact on the price, CPAI mentioned.
The association suggested that in case of significant volatility in agri-commodity contracts, readily reversible options such as increasing margins and reducing open interest limits for commodity derivative contracts may be resorted to.
No comments:
Post a Comment