India, Jan. 17 -- Markets regulator Sebi has allowed stock exchanges to launch 'options in goods' in commodity derivatives segment, a move that will play a major role in stimulating agricultural marketing and enable farmer-friendly options products.
Securities and Exchange Board of India (Sebi) has also put in place a product design and risk management framework in this regard.
"Stock exchanges are now permitted to launch 'option in goods' in their commodity derivatives segment. This is in addition to options on commodity futures," Sebi said in a circular.
Prior approval from Sebi will be required for the stock exchanges to start trading in options contracts with underlying goods.
Sebi's decision has been welcomed by industry experts, s...