Sebi allows options trading on commodity exchanges

With an aim to deepen the commodity derivatives markets and enhancing liquidity, markets regulator Securities and Exchange Board of India (Sebi) on Wednesday allowed options trading on commodity bourses.

This has been a long pending demands from the exchanges, investors and market participants. So far, only future trading was permitted on commodity bourses.

"It has been decided that commodity derivatives exchanges shall be permitted to introduce trading in 'options'," the Sebi said in a circular.

The move become will be effective from Wednesday.