Introduction of Options in Commodity Derivatives Market
Summary
SEBI permits Commodity Derivatives Exchanges to introduce trading in options contracts following recommendations from the CDAC. Exchanges must obtain prior approval from SEBI and implement necessary amendments to their bye-laws and regulations. The circular mandates exchanges to notify members, disseminate information on their websites, and report implementation status to SEBI.
Text
Commodity Derivatives Exchanges shall be permitted to introduce trading in 'options'.
The Commodity derivatives exchanges willing to start trading in options contracts shall take prior approval of SEBI for which detailed guidelines will be issued in due course.
take steps to make necessary amendments to the relevant bye-laws, rules and regulations for the implementation of the same.
bring the provisions of this circular to the notice of the members of the Exchange and also to disseminate the same on their website.
communicate to SEBI, the status of the implementation of the provisions of this circular.
This circular is issued in exercise of powers conferred under Section 11 (1) of the Securities and Exchange Board of India Act, 1992, to protect the interests of investors in securities and to promote the development of, and to regulate the securities market.
Source: SecMarx — Introduction of Options in Commodity Derivatives Market. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.