Home / Market / Stock-market-news /  Sebi directs commodity exchanges not to launch new chana contract

Mumbai: The Securities and Exchange Board of India or Sebi on Thursday directed the country’s commodity derivatives exchanges not to launch any new derivatives contract based on chana (gram) till further orders.

In a late evening order, the capital markets regulator said the move is attributed to the gap in demand and supply of chana in the market.

The regulator said there could be a supply constraint in chana in the near term and as an abundant caution, exchanges should refrain from launching any new future contracts based on chana.

Sebi said no new position will be allowed to be taken by any participant and only squaring up will be allowed.

MCX and NCDEX are the two main nationwide commodity derivatives exchanges in the country. Chana is one of the key underlying agri-commodities whose future contracts are traded on these bourses.

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