Sebi halves turnover of agri, agri-processed commodity futures needed to launch options

The circular will be applicable for all Options on Futures contracts (agricultural and agri processed commodities) introduced on or after June 1, 2024, with the minimum turnover.

The minimum turnover of agri and agri-processed commodities futures required to launch options on these commodities has been slashed by half.

The future-contracts' turnover has now been reduced to Rs 100 crore over the previous twelve months from the earlier Rs 200 crore.

In a circular dated May 27, the Securities and Exchange Board of India (SEBI) stated: "Based on representations received from market participants and deliberations by Commodity Derivatives Advisory Committee (CDAC) of SEBI, it is decided that for launching Options contracts on agricultural and agri processed commodities, the average daily turnover of underlying futures contracts of the corresponding commodity during the previous twelve months shall be Rs 100 crore instead of existing Rs 200 crore."

Therefore, the text for eligibility criteria for launching options stands revised as, "6.1.2. Eligibility criteria for launching Options with Commodity Futures as underlying: Options would be permitted for trading on a stock exchange only on those commodity futures as underlying, which are traded on its platform and satisfy the criteria specified below on the respective exchange:

i. The average daily turnover of underlying futures contracts of the corresponding commodity during the previous twelve months, shall be at least:

a) Rs 100 crore for agricultural and agri-processed commodities

b) Rs 1,000 crore for other commodities"

The circular will be applicable for all Options on Futures contracts (agricultural and agri processed commodities) introduced on or after June 1, 2024 wherein average daily turnover of underlying futures contracts during the previous twelve months is Rs.100 crore.