The Securities and Exchange Board of India vide its circular dated 20th July 2020 has modified the eligibility criteria for selection of underlying commodity futures for options on commodity futures.
SEBI in its earlier circular dated 13th June 2017 has prescribed the eligibility criteria for selection of commodity futures as underlying for options: “The underlying ‘Futures contracts’ on the corresponding commodity shall be amongst the top five futures contracts in terms of total trading turnover value of previous twelve months.
However, through this notification, the above provision has been repealed and the decision has been taken on the basis of representations received from stock exchanges and stakeholders.
Click here to read the notification.
