Sebi's ban on derivatives contract for 7 commodities a retrograde step: Shree Renuka Sugars

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Markets regulator Sebi on Monday directed stock exchanges not to launch new derivative contracts in wheat, crude palm oil, moong and few other commodities till further orders. The latest directive will come into force with immediate effect, according to a release.

Launch of new contracts for the paddy (non-basmati), wheat, soya bean and its derivatives (its complex), crude palm oil and moong have been barred till further orders by the regulator. The list includes chana, and mustard seeds and its derivatives (its complex). The derivative contracts in these commodities were suspended earlier this year, the release said.

In respect of running contracts, no new position will be allowed to be taken and only squaring up of position will be allowed. The directions will be applicable for a period of one year, it added.

In an interview to CNBC-TV18, Atul Chaturvedi, Executive Chairman of Shree Renuka Sugars said that it is a retrograde step and will put the commodities market back by a few years.

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With text inputs from PTI.