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Are options also allowed in commodity derivatives?

April 26, 2017allowed commodity derivatives Options

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Are options also allowed in commodity derivatives?

1 Answer

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No. Options in goods are presently prohibited under Section 19 of the Forward Contracts (Regulation) Act, 1952. No exchange or person can organise or enter into or make or perform options in goods. However the market expects the government to permit options trading in commodities soon. Disclaimer: The content in the FAQ section is only informative. The answers to the FAQs may change with changes at the exchange level. Please check with us/exchange the details before executing any trade. Sharekhan will not be responsible for the information used or whatsoever.