In a recent directive, the Securities and Exchange Board of India (SEBI) has announced the extension of the suspension of trading in derivative contracts for key agricultural commodities. The suspension, originally imposed on December 19, 2021, will now continue until March 31, 2025.
Commodities under Suspension:
- Paddy (non-basmati)
- Wheat
- Chana
- Mustard seeds and its derivatives
- Soybean and its derivatives
- Crude Palm Oil
- Moong
The initial ban was enforced as part of SEBI’s efforts to stabilize prices and control speculative activities in the derivatives segment. Over the past years, the suspension has been extended in phases, with the latest extension pushing it to the end of the first quarter of 2025.
Reason and Market Impact:
This move aligns with SEBI’s objective of curbing volatility in essential commodities and protecting stakeholders from speculative risks. The suspension has been closely monitored, with input from government authorities to ensure food security and fair pricing.
SEBI will continue to review the situation and engage with market participants for a potential future reintroduction of trading in these commodities.
Disclaimer: The information provided is for informational purposes only and should not be considered financial advice. Please consult a financial advisor for specific advice.
