New Delhi.Markets regulator Sebi on Friday extended the suspension of futures and options trading in seven agricultural commodities, including wheat and moong, for one more year till December 2024 in a bid to rein in prices.
The other agricultural commodities suspended by Sebi are paddy (non-basmati), chana, crude palm oil, mustard seeds and their derivatives and soya bean and its derivatives.
“The suspension of trading in the above contracts has been extended for one more year beyond December 20, 2023, i.e. till December 20, 2024,” Sebi said in a statement.
The suspension permits squaring up of existing positions in these commodities, but no fresh futures trading is permitted for a year.
To curb inflation, Sebi in December 2021 prohibited exchanges from launching new derivative contracts of soyabean, mustard seeds, chana, wheat, paddy, moong, and crude palm oil.
These directions were applicable for one year. In December last year, the suspension was again extended for one more year till December 20.
Last year, the Commodity Participants Association of India (CPAI) had urged the government and Sebi to allow exchanges to resume trading in these seven agricultural derivatives contracts.
The association had stated that prolonged bans are detrimental to the Indian commodity market ecosystem and severely dent the perception regarding India’s ease of doing business environment.PTI