The Securities and Exchange Board of India (SEBI) has extended the suspension of trading in certain commodity derivatives for an additional year, until December 20, 2024. This move comes as a continuation of previous suspensions, which were initially implemented on December 19, 2021, and subsequently extended on December 20, 2022.
The affected commodities include:
- Paddy (non-basmati)
- Wheat
- Chana
- Mustard seeds and its derivatives (its complex)
- Soya bean and its derivatives (its complex)
- Crude Palm Oil
- Moong
SEBI had initially issued directions to stock exchanges with a Commodity Derivatives Segment, mandating the suspension of trading in derivative contracts for these commodities for a period of one year. This was followed by a press release on December 20, 2021, detailing the directives issued to the stock exchanges.
The suspension was first extended for an additional year beyond December 20, 2022, i.e., until December 20, 2023. The latest extension now pushes the suspension period to December 20, 2024. This decision is part of SEBI’s ongoing efforts to regulate and oversee the commodity derivatives market in India. We have yet to see how this extended suspension will impact the commodity markets and the broader financial sector.
