Signage for the Bombay Stock Exchange (BSE) is displayed next to a bronze bull statue at the entrance to the BSE building. (Photographer: Dhiraj Singh/Bloomberg)

BSE, NSE Get SEBI’s Nod To Launch Commodity Derivatives Segment

Leading stock exchanges BSE Ltd. and National Stock Exchange Ltd. today said they received the market regulator’s approval to launch trading in the commodity derivatives segment from Oct. 1.

Both BSE and NSE will begin trading in the segment with non-agriculture commodities like metals, followed by agri commodities subsequently, as said in separate statements.

In a separate circular, NSE too informed that it received SEBI’s clearance for introducing the commodity derivatives segment from Oct. 1. Further, National Securities Clearing Corporation Ltd., too, received a clearance from the regulator for carrying out clearing and settlement of trades executed in the commodity derivatives segment on the NSE.

Currently, the exchanges offer trading in equities, equity derivatives as well as currency derivatives.

Last December, the Securities and Exchange Board of India announced that from October the country will have a unified exchange regime where bourses will be allowed to offer trading in commodity derivatives.

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The BSE said it has received “another feather in its hat by getting SEBI’s approval to launch the commodity derivatives segment”.

The commodity derivatives platform will help in efficient price discovery, reduction in timeline, a cost-effective, user-friendly robust risk management system, and a wider market penetration, the exchange said.

Besides, the BSE will conduct mock trading in live environment for the segment on Saturday. The NSE, too, had conducted a similar session on Sept. 1.