The Securities and Exchange Board of India (SEBI) on May 27, 2024, issued a notification regarding the Eligibility criteria for launching Options with Commodity Futures as underlying by Stock Exchanges having commodity derivative segments.
The following has been stated namely: -
• Reference is drawn to the Master Circular for Commodity Derivatives Segment prescribes Product Design and Risk Management Framework for Options on Commodity Futures
• The aforesaid Master Circular stands revised as follows:
“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) INR 100 crore for agricultural and agri-processed commodities
b) INR 1000 crore for other commodities”
• The Circular shall be applicable for all Options on Futures contracts (agricultural and agri-processed commodities) introduced on or after June 01, 2024, wherein average daily turnover of underlying futures contracts during the previous twelve months is Rs. 100 crore.
[Notification No. SEBI/HO/MRD/MRD-PoD-1/P/CIR/2024/61]
