Introduction of Futures on Commodity Indices
Introduction of new commodity derivative products is considered conducive to the overall development of the commodity derivatives market as it helps in attracting broad-based participation, enhances liquidity, facilitates hedging and brings in more depth to the commodity derivatives market. In the Union Budget Speech for the year 2016-17, The Finance Minister announced that new derivatives products will be developed by SEBI in the Commodity Derivatives Market. Pursuant to this, SEBI permitted recognized stock exchanges with commodity derivative segments to introduce futures on commodity indices and issued guidelines for the design of commodity indices and product design for futures on commodity indices.