Skip to main content

NSE to finalise list of commodity derivatives soon

By
NSE to finalise list of commodity derivatives soon
As it awaits Sebi guidelines on universal exchanges, NSE has said it will finalise its list of commodity derivatives products to launch on its platform in next 1-2 months.
The leading bourse also said it has made the required technological changes for such trades. The National Stock Exchange (NSE), which is looking to offer trade in commodity derivatives such as energy and metals, is currently engaging brokers and other market participants for shortlisting such products with an aim to bring in a diversification in the segment.
On December 28 last year, the markets watchdog Securities and Exchange Board of India (Sebi) had announced that from October 2018, the country will have a unified exchange regime wherein stock exchanges will be allowed to offer trading in commodities derivatives. Detailed guidelines are awaited.
"Our technology platform is ready for commodity derivative trading. Whatever technological changes were required has already been made for the segment," NSE Chief of Business Development Ravi Varanasi told PTI.The exchange is in the process of shortlisting commodity derivative products, which would be fit for trading in the market, the NSE official added.
It is planning to launch trading in energy and metals."We are engaging with brokers and other market intermediaries for the purpose. The process of finalising the products should be completed in 1-2 months. We do not want to restrict ourselves from trading in any asset class or product in the segment," he added.
While noting that many brokerages are in process of consolidating their commodity and equity businesses, Varanasi said any plans to offer commercial incentives to trading members for transactions in commodity derivatives will be taken closer to the launch of the segment.NSE closest rival BSE had recently unveiled its plans for commodity derivative trading. The exchange plans to enter the segment with non-agri products such as bullion, base metals, crude and natural gas, among others.
It has also announced a free membership for the commodities segment.The Sebi's universal exchanges move is expected intensify competition among the equity bourses BSE, NSE, and commodities players like Multi-Commodity Exchange and National Commodity and Derivatives Exchange.
The Business Standard, New Delhi, 29th January 2018

Comments

Post a Comment

Popular posts from this blog

Govt’s gamble on GST cuts: What do the bond and currency markets signal?

By
  It’s not just humans who suffer from cognitive biases; markets do too. Interestingly, different financial markets exhibit distinct biases, each interpreting events through its own prism of prejudice. Take the recent announcements on GST reforms: equity markets have chosen to view them through the lens of growth, while bond and currency markets are focusing on potential macroeconomic risks—fiscal pressures and current account challenges. So, which lens captures the true pulse?Equity markets may be right in expecting GST reforms to revive consumption, which has remained lacklustre for a while. But the key question remains—will this revival come at the cost of broader macro stability?It is well known that consumption stocks have rallied since the GST rationalisation announcement. But what about bond markets? What signals are they sending since this rejig was announced from the ramparts of the Red Fort?The signs aren't encouraging. Bond prices have slumped and yields have surged sinc...
Post a Comment
Read more

Luxury carmakers urge clarity on GST rates to boost festive season sales

By
  A clear picture regarding new GST rates at the earliest will help the overall auto industry, including the luxury car segment, to regain momentum in the ongoing quarter, which generally sees enhanced sales on account of the festive season.The high-powered GST Council, chaired by Finance Minister Nirmala Sitharaman, will meet on September 3-4 to discuss moving to a two-slab taxation.In an interaction with PTI, BMW Group India President and CEO Hardeep Singh Brar said the recent speculation about the change in GST rates has caused uncertainty in the minds of consumers.Consumer interest and demand is strong, but they (prospective buyers) have adopted a wait-and-watch approach, and this delayed decision-making is impacting new vehicle sales at a certain level, he noted."Expediting clarity on GST rates is essential to get back to speed and ensure the auto sector's contribution to economic growth during this quarter is robust," Brar stated.He also hoped that the sustainable p...
Post a Comment
Read more

Sebi proposes tighter norms for green bond third-party reviewers

By
  Sebi on Friday said it has proposed to tighten the norms to appoint independent third-party reviewers or certifiers for green debt securities to align them with requirements for other ESG-linked bonds.In a draft circular, Sebi said that the current norms for green bonds, introduced in February 2023, lack detailed requirements around reviewer independence, conflict of interest mitigation, and disclosure standards that are now in place for other ESG-linked securities under a June 2025 circular.The regulator's latest proposal seeks public comments on a revised framework that would bring parity by incorporating comprehensive criteria for third-party certifiers of green bonds on non-convertible securities.Under the proposed norms, issuers of green debt securities will need to appoint reviewers who are independent of their management, directors, and key managerial personnel. These reviewers will be remunerated in a way that prevents any conflicts of interest and possess relevant expert...
Post a Comment
Read more