The cabinet cleared the way to allow commodities exchanges to launch options on Thursday, a move which should boost liquidity in markets which have already attracted international investors.
"New products like options will be allowed in the commodity market," a statement issued by the government said after cabinet approved amendments to a regulatory bill. "This will benefit various stakeholders including the farmers."
 |
The bill now goes to parliament for approval, the statement said. The Forward Markets Commission would be the regulator for the exchanges and will have autonomy, the statement said.
International investors Goldman Sachs and Intercontinental Exchange have already bought small stakes in Indian exchanges.
India's commodity market regulator, B.C. Khatua, told Reuters he expected to see institutional financial players in the futures markets after the changes.
Last month, the market regulator said India's Reliance Anil Dhirubhai Ambani Group planned to buy a stake in the Indian Commodity Exchange, a leading bourse for trade in metals including gold, while Jaypee Capital wanted to acquire 26 percent in the National Commodity and Derivatives Exchange.
Great News for Indian Commodity Traders as it paves way for hedging & better strategic trading.
Best Wishes :-)
Jai Jinendra
