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

Vedanta cuts prices of aluminium ingots second time this week

Friday, Oct 30, 2020 By Nikita Periwal MUMBAI – Vedanta Ltd has cut the prices of its aluminium ingots for the second time this week, reducing prices by nearly 1% or 1,500 rupees per tn, trade sources told Cogencis.    Companies generally link prices of their products to the three-month futures of aluminium on the London Metal Exchange. So far this […]

TREND: Lubricant sales up as wheels of econ activity start turning

Friday, Oct 30, 2020 By Sukalp Sharma NEW DELHI – After being hit hard by COVID-19 and the stringent nationwide lockdown in its wake, India's lubricants industry appears to have bounced back rather well, riding on the back of a recovery in demand from the automobile sector and other consuming industries. Recent data point to higher demand for lubricants […]

Big Bank Theory: Kotak-IndusInd deal – Fire? Smoke? Smokescreen?

Friday, Oct 30, 2020 Uday Kotak's reputation as a dealmaker and Kotak Mahindra Bank's capital war chest means it is often in the news as a potential acquirer. The bank has said it is open to inorganic growth, but does a merger with another bank make sense?  By T. Bijoy Idicheriah "We didn't start the fireNo, we didn't […]