Commodity Options could be as big as equity derivatives in next 15-20 year: MCX

Market regulator Securities and Exchange Board of India (SEBI) has paved the way for options trading on commodity exchanges but with some riders.

In an interview to CNBC-TV18, Mrugank M Paranjape, MD & CEO of Multi Commodity Exchange of India (MCX) spoke about the latest happenings.

Below is the verbatim transcript of the interview:

Sonia: When can you launch the first product now that the Sebi guidelines are out?

A: The guidelines from Sebi are very clear in terms of how we would look at, which products would qualify but having made that decision we need to look at various aspects before we say which will be the launch date.

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Mrugank Paranjape

MD & CEO|MCX

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First and foremost is how do we build the awareness and make sure that the entire end-to-end value chain is able to participate in whatever contract we choose. Second, we will have to get whole host of mock trading done and last but not the least, we do have a Central Board of Direct Taxes (CBDT) clarification awaited on the treatment of Commodities Transaction Tax (CTT) or Securities Transactions Tax (STT), whichever way we look at it, on some aspects of the contract.

Our view with the approval process and with our own launch activities is that it is something like 45 days from now that we should be looking at trading to commence in Options contracts.

Also watch accompanying video of CNBC-TV18's Yash Jain for details.