Country's leading stock exchanges Bombay Stock Exchange and National Stock Exchange of India have received approval from capital market regulator SEBI to launch commodity derivatives segment with effect from October 1, 2018.
The Securities and Exchange Board of India (SEBI) on December 28, 2017, had announced that from October 2018, the country would have a unified exchange regime wherein stock exchanges would be allowed to offer trading in commodities derivatives.
The BSE will begin trading in commodity derivatives with non-agriculture commodities like metals initially, followed by agri commodities subsequently, it added.
According to the exchange, its commodity derivatives platform will help in efficient price discovery, reduction in timelines, cost effective, user-friendly, robust risk management system and wider market penetration.
Besides, the exchange said it would conduct mock trading in live environment for the segment on Saturday as it prepares itself for the launch of trade in such products. The platform offers trading in equities, equity derivatives as well as currency derivatives.
The exchange had held mock trading session in the segment in January this year. Larger rival NSE had conducted a similar session on September 1.
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