SEBI has informed that the suspension of derivative trading in a range of major farm commodities has been extended until March 31, 2026. The decision is made in an effort to stabilize market trends as volatility persists.
Commodities Impacted: The suspension covers non-basmati paddy, wheat, chana, crude palm oil, soya bean, and mustard seeds.
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Initial Suspension: The suspension was originally imposed on December 19, 2021, in order to curb speculation and price volatility in staple commodities.
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Previous Extensions: The suspension has been extended several times prior, with the current expiration originally scheduled to end on January 31, 2025.
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Market Impact: The action aims to control excessive speculation and ensure food price and inflation stability.
This extension is a demonstration of SEBI's consistent efforts towards upholding market integrity and safeguarding consumers from price volatility.
Source: Taxguru Consultancy