Futures Trading In Five More Commodities Is Banned By SEBI

The Securities and Exchange Board of India (SEBI), India’s market regulator, banned futures trading in five more commodities on Monday. SEBI announced in a notification that derivative contracts in non-basmati paddy, wheat, soya bean and its derivatives (complex), crude palm oil, and moong had been halted with immediate effect.

Futures trading of “chana and mustard seeds, as well as their derivatives (complicated) have already been suspended, as per SEBI news releases dated August 16, 2021 and October 08, 2021, respectively,” it added.

“No new contract shall be launched until further orders,” the markets watchdog added.

In addition, SEBI warned, “No new positions will be allowed to be taken on ongoing contracts. Only position squaring will be permitted.”

It went on to say that the instructions will be in effect for a year.

This is despite retail or consumer price-based inflation reaching a three-month high of 4.91 percent in November.

According to another set of government figures, wholesale inflation increased to 14.23% in November from 12.54 percent in October. Since April of this year, WPI inflation has been in double digits for eight months in a row.