Sebi is working out the details for introduction of commodity options trading while new institutional players such as banks will be allowed in the commodities derivatives market in a gradual manner.
In his first public event after taking charge as Sebi chairman, he said there is a need for greater integration as he batted for improving the liquidity.
Asked about new products, Tyagi said soyabean contracts have been introduced while future trading in diamond would be launched soon.
To a question on whether there are legal issues in introduction of options trading, he said, "details of the contract are being worked out and then it will go to the Sebi board (for approval). Law does not require any amendment but some tweaking is needed and that will be done".
He was speaking at an industry event here that was also attended by Agriculture Minister Radha Mohan Singh and Minister of State for Finance Santosh Gangwar.