Derivatives trade: Sebi extends suspension in 7 agri commodities

The Securities and Exchange Board of India (Sebi) has extended the suspension on derivatives trading of seven commodities for one more year till December 20, 2023. The ban was on paddy (non-basmati), wheat, chana, mustard seeds, soyabean, crude palm oil and moong.

Derivatives on several commodities have been banned/suspended as many as 19 times in the last two decades, with some facing multiple suspensions. The latest was the year-long futures trading ban on 7 agri-commodities on December 20, 2021.

A September report by NCDEX said the suspension of futures contracts in the past have not resulted in the desired impact of controlling the prices. At best, there have been minor corrections in the short term. The extension will hit the NCDEX as these commodities contributed nearly 54 per cent of the total deposits between April 2021 and July 2021. FE