Sebi bars new 'chana' contracts in futures market

Joining hands to curb a sharp surge in prices of pulses, regulator Sebi today barred launch of any fresh contracts in 'chana' in the futures markets and also asked the investors to wind down their existing positions.

In the pulses category, futures trading is currently allowed only in chana (gram) on the commodities derivative exchanges.

With the government initiating multi-pronged efforts to check the prices of pulses, which have shot up to as high as Rs 200 per kg, capital markets regulator Sebi has decided to stop launch of new contracts in chana futures and any fresh position in existing contracts to check any speculative rally.

Chana prices have soared by about 24 percent in the last one year to up to Rs 94 per kg. The government has, however, directed its agencies to sell chana dal at Rs 60 per kg.

In a press release, Sebi said the decision has been taken "considering the demand and supply gap, as reflected from the price trend in Chana and the supply constraints in near term, as an abundant caution".

The regulator has accordingly directed the commodity derivatives exchanges that "no new Chana contract shall be launched till further orders".

"In respect of running contracts in Chana, no new position will be allowed to be taken. Only squaring up of position will be allowed," Sebi said, while adding that these directions will be implemented with immediate effect.

Separately, leading commodity bourse NCDEX said in a circular, "As directed by Sebi, no new chana contracts will be launched till further orders.

"In respect of running contracts in chana, no new positions will be allowed to taken and only squaring up of positions will be allowed.