The Multi Commodity Exchange of India (MCX) has proposed launching weekly index options for its bullion derivative index, the MCX Bulldex, according to two people familiar with the matter. The proposal is currently in the early stages of discussion within a regulatory committee, they added.
"The matter is being discussed in the commodity derivatives advisory committee (CDAC) of Sebi (Securities and Exchange Board of India) but no decision has been taken yet. Weekly options pose a risk in commodities and may hurt retail investors, so this will be discussed thoroughly,” said the first person cited above.
“MCX has to ensure that the weekly index options do not just bring in temporary volume to the exchange but have both breadth and depth in terms of multiple commodities being spread out over several months while having adequate liquidity in the market,” he added.
The discussions are still in the preliminary stages and the committee is nowhere near a final decision.
The MCX Bulldex is based on the MCX iComdex Bullion Index, which tracks the prices of gold and silver. The Bulldex is settled in cash and involves no physical delivery, unlike the standalone gold and silver derivatives, which require physical delivery.
The second person said, "A very early stage discussion is under way on this as such a contract will draw volumes which are currently absent on the monthly MCX Bulldex futures and options contracts.”
Both sources spoke on the condition of anonymity, given the highly sensitive nature of the matter. Emails sent to MCX and Sebi on Wednesday went unanswered.
Sebi tightening measures a hurdle
Commodity derivative indices are currently illiquid, in contrast to their equity counterparts like the Nifty and Sensex, where highly popular weekly options launched by the NSE and BSE attract significant market participation. However, Sebi has tightened trading in equity derivatives since November 2024, following massive losses among retail investors.
The measures include restricting each exchange to just one weekly contract from multiple earlier, tripled contract sizes, and imposing strict position limits in phases, among others. This followed a September 2024 Sebi study that found 11.3 million individual traders lost a massive ₹1.81 trillion from trading futures and options over FY22-24. Another study in July 2025 found that retail investors’ losses surged 41% to ₹1.06 trillion in FY25 from ₹74,812 crore in FY24.
However, more recent data showed Sebi’s regulatory measures appear to be bearing fruit. The combined premium turnover growth of NSE and BSE index options slowed to 9.3% year-on-year in FY26 from 10.5% in the preceding fiscal, according to data from the exchanges.
However, a former regulatory official said receiving permission for weekly commodity index options will be a "tough ask", given the losses investors have suffered in weekly equity variants.
The first person cited above echoed this, saying, “Though the matter is in early discussion stage and may go through, CDAC members are not very enthusiastic about it due to what Sebi observed with weekly options in equities and the losses made by retail investors.”
MCX, which started operations in November 2003, runs India's largest commodity derivatives segment with a market share of more than 99%. MCX shares closed 0.29% higher at ₹2791.4 on the NSE on Thursday, having vastly outperformed the Nifty Midcap 50 index – of which it is a constituent – over the past year. The stock has generated an absolute return of 127.52% over this period against the index's mere 8.98% gain.
