The companies hedge in commodities to offset risks arising out of fluctuations in raw-material prices."We will soon write to SEBI on this issue. In fact, this was the recommendation of our Sub-committee," Forward Markets Commission Ramesh Abhishek told PTI.
The Committee had suggested that listed firms should disclose their exposure in commodities hedging saying such information will benefit both the companies and the commodity market, he said.
Currently hedging in Indian commodity bourses is taking place on a very small scale with scope for development.
Citing benefits of hedging, leading agri-commodity bourse NCDEX Managing Director In-charge Samir Shah said companies having exposure in commodities will be able to lock their business margins and protect themselves from price fluctuations in the market.
"The companies would also be able to access more cost effective financing from banks. The banks could lend more cost-effectively to companies who have hedged their commodities," he added.
There are 22 commodities bourses in the country, of which 6 are operating at national level.