Sebi extends suspension on trading in select commodity derivatives until Mar 2025
The directive was initially issued on December 19, 2021, and the suspension was first set to last until December 20, 2022 but was subsequently extended thrice - first for an additional year, until December 20, 2023, then until December 20, 2024, and then again till January 31, 2025
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New Delhi: Markets regulator Sebi on Friday extended the suspension of derivatives trading in seven agricultural commodities, including wheat and moong, for two more months till March 2025 in a bid to rein in prices.
The other agricultural commodities suspended by Sebi are paddy (non-basmati), chana, crude palm oil, mustard seeds and its derivatives and soya bean and its derivatives.
The directive was initially issued on December 19, 2021, and the suspension was first set to last until December 20, 2022 but was subsequently extended thrice - first for an additional year, until December 20, 2023, then until December 20, 2024, and then again till January 31, 2025. Now, the regulator has decided to further extend the suspension for two more months, keeping the trading restrictions in place until March 31, 2025. "In continuation of the said directions, the suspension in trading in the above contracts has been extended till March 31, 2025,"
Sebi said in a statement. The suspension permits squaring up of existing positions in these commodities, but no fresh futures trading is permitted for a year. This move aims to curb excessive speculation and volatility in the commodity markets, particularly in these essential agricultural products, which have a significant impact on food prices and inflation.
