Commexes may get nod for options contracts this week

Mumbai: Sebi could permit commodity exchanges like MCX and NCDEX to launch options contracts this week, a person aware of the development said.

"The announcement would likely coincide with the completion of a year, on Wednesday," he said. That ends a year since erstwhile commodity market regulator Forward Markets Commission (FMC) was merged with Sebi to strengthen market regulation.

A Sebi official was not available for comment immediately .

A Sebi-appointed committee had on July 22 made recommendation for initial launch of an options contract on gold and refined soya oil. Markets are anticipating that options would be based on futures in which farmer cooperatives could trade on their behalf.

Sebi is also learnt to have written to the finance ministry for the need to keep futures contracts outside the purview of stock limits to enable an effective market. For example, sugar futures have to conform to holding of just 500 tonnes by a trader even though near position limits are in multiples of that.