Trading in futures in 7 commodities banned for 1 year to contain inflation; SEBI places orders for current contracts – Nach Welt

SEBI asked the commodity exchanges not to enter into futures contracts on the seven commodities for a year. For current contracts, the market regulator said no new positions in these commodities are allowed

To contain inflation, the government suspended futures trading for some agricultural commodities for a year. Trade in seven commodities, including paddy (non-basmati), wheat, chana, mustard seeds and its derivatives, soybeans and its derivatives, raw palm oil and moong has been suspended with immediate effect, according to a statement from the Treasury Department. The Securities and Exchange Board of India (SEBI) asked the commodity exchanges not to enter into futures contracts for the seven commodities for a year. For current contracts, the market regulator said that according to a SEBI order, no new positions in these commodities are allowed.

“No new contract will be started until further orders are placed. No new position may be accepted for ongoing contracts. It is only allowed to square the position. These instructions will be implemented with immediate effect. The above-mentioned instructions apply for a period of one year, ”said SEBI in the notification. It does so against the backdrop of consumer price inflation (CPI), or retail inflation, which rose to a three-month high of 4.91 percent in November. Food inflation rose to 1.87 percent in November from 0.85 percent a month ago, with vegetable prices rising. Apparel and footwear inflation was 7.94 percent in November, up from 7.39 percent in October.

Meanwhile, wholesale inflation rose to 14.23 percent in November from 12.54 percent in October. WPI inflation has remained in double digits for eight straight months since April this year. According to the data, vegetable inflation hardened along with egg and meat prices in November. Inflation in the fuel and electricity basket was higher in November at 39.81 percent. The food index more than doubled to 6.70 percent from 3.06 percent in the previous month.

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Reference-www.nach-welt.com

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