After ensuring a consolidating risk management and surveillance mechanism in commodity markets, regulator Securities and Exchange Board of India has now decided to broaden participation of other players in this segment.Sebi is also of the view to encourage competition in the commodity derivatives, which aims at no exchange having monopoly in any sub segment of commodities.
This was indicated by the Sebi chairman U K Sinha conversation with media today as it completed one year of commodity regulations.
Sebi has already permitted option trading in commodities and initially one agri commodity and one non-agri commodity will be permitted and asked exchanges to propose their plan on introducing option trading. "Their plan should include commodities in which they plan to introduce option, system and risk management preparedness and design the parameters and product," he said. According to reliable information, MCX has preferred gold or crude oil as its priority and NCDEX prefers guar, mustard seeds, soybean seed and oil. Now exchanges will have to first select one and come with a plan.