NCDEX gets approval for 4 new options contracts

Commodity exchange NCDEX Saturday said it has received nod to launch options contracts in four new commodities by markets regulator Securities and Exchange Board of India (Sebi).

The exchange is expected to launch these contracts early next week, National Commodity & Derivatives Exchange Ltd (NCDEX) said in a statement.

For guargum, soybean and chana, the first contracts will be launched with November 2018 expiry whereas, the first refined soy oil options contract will be expiring in December 2018, it said.

The exchange has modified the expiry date of the options contracts for these commodities as compared to the existing options in Guarseed, it said.

Contracts for the newly added commodities will expire on 10th of the underlying futures expiry month, it said.

Launch of options in the four commodities will provide an additional tool for risk management to the value chain participants, including farmers, FPOs, traders, processors etc, it said.

So far, 73 FPOs from 12 states have traded on the NCDEX platform in 16 commodities, out of which 50 have traded in soybean and 4 in Chana, it said.