Sebi chief UK Sinha says commodity market needs more legal clarity

Sebi chief U. ok. Sinha says low participation of producers and hedgers is the principle subject for the capital market regulator

Securities and trade Board of India (Sebi) chairman U.okay. Sinha on Friday stated that low participation of producers and hedgers is the primary subject for the market regulator, while launch of recent products similar to choices will need amendments in the Securities Contracts laws Act, or SCRA.

    Sinha, whose time period as the Sebi chief is ending on 1 March, mentioned the principle center of attention of the capital market regulator has been possibility-free integration with the ahead Markets commission, the erstwhile commodity market regulator.

“the combination wants extra felony clarity,” mentioned Sinha at the global commodity derivatives convention, 2017, geared up by means of Sebi.

so as to reinforce liquidity in the commodity derivatives market, Sebi is making efforts to attract extra contributors corresponding to foreign portfolio buyers (FPIs) and mutual cash, Sinha stated.

“there may be lack of transparency and effective worth discovery in commodities,” he mentioned.

Sinha delivered that there was need for a transparent legal provisions for spot markets as neatly. “Our spot market can be extremely fragmented,” said Sinha.

On 20 January, the market regulator had floated a discussion paper inviting comments on the way to settle and worth commodity options product, lack of which used to be making it tough for exchanges to launch this product.

For this, the regulator had proposed amendments to stock Exchanges and Clearing firms rules to allow options which have commodity futures as underlying.

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