Sebi Extends Suspension of Agri Derivatives Trading

The Securities and Exchange Board of India (Sebi) has extended its suspension of derivatives trading in seven agricultural commodities, like wheat and moong, until March 2025. This extension aims to control prices by curbing speculation and volatility. The suspension does not allow new futures trading but permits closing existing positions.

The Securities and Exchange Board of India (Sebi) has announced an extension of its suspension on derivatives trading for seven critical agricultural commodities, including wheat and moong, until March 2025. This regulatory move is geared toward stabilizing prices within the agricultural sector by reducing market speculation.

Initially imposed on December 19, 2021, the suspension was first slated to end in December 2022 but has been extended multiple times due to ongoing price volatility. This measure impacts several other agricultural products such as non-basmati paddy, chana, crude palm oil, mustard seeds, and soya bean derivatives.

The suspension limits trading to settling existing contracts rather than initiating new ones, as the regulator aims to mitigate excessive speculation that could drive up food prices and inflation, causing significant impacts on the economy.

(With inputs from agencies.)