Market regulator, SEBI, has announced an extension of trading restrictions on specific derivatives.
These restrictions will now remain in place until December 2024. The affected derivatives include wheat, mustard, gram, mango, soybean, crude palm oil, and non-Basmati rice.
Details of the Ban
SEBI has increased restrictions on trading in derivatives linked to paddy (non-Basmati), wheat, gram, mustard seed, soybean, crude palm oil, and moong.
This extension of the ban is a response to high inflation concerns. It means that derivative trading for these commodities will continue to be suspended until December 20, 2023.
What SEBI Says
In a statement, SEBI explained that the suspension of trading in these contracts has been prolonged for an additional year, until December 20, 2024.
While existing deals in these commodities can still be executed, no new futures trading in these categories will be allowed for the next year.
Background
To combat inflation, SEBI initially prohibited the launch of new futures and options contracts for soybean, mustard, gram, wheat, paddy, moong, and crude palm oil in December 2021.
