Prelims Level
Mains Level
Prelims Syllabus : Economy Mains Syllabus :

Why in news?

  • The Securities and Exchange Board of India has given the regulatory go-ahead to BSE and NSE to start their respective commodity derivatives segments. Both bourses plan to start the new segment from October

Background:

  • Commodities exchange is a legal entity that determines and enforces rules and procedures for the trading standardized commodity contracts and related investment products. Commodities exchange also refers to the physical center where trading takes
  • Interestingly, both the equity exchanges NSE and BSE plan to start with non-agriculture commodities like metals and bullion, and subsequently launch contracts in agriculture commodities.
  • Currently, Multi Commodity Exchange of India (MCX)is the largest commodity bourse with over 90% market
  • The commodity market in India is regulated by market board SEBI since September 2015. Prior to that Forward Market commission, Overseen by Ministry of Consumer Affairs regulated Commodities market in

SEBI:

  • The Securities and Exchange Board of India was established as a non-statutory regulatory body in the year 1988, but it was not given statutory powers until January 30, 1992, when the Securities and Exchange Board of India Act was passed by the Parliament of India. Its headquarters is at the business district at the Bandra Kurla Complex in
  • Objective is to protect the interests of investors in securities and to promote the development of, and to regulate the securities market and for matters connected therewith or incidental
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