With the number of exchanges offering commodity derivatives on the rise and national-level equity bourses also entering the fray, the Securities and Exchange Board of India (SEBI) is making all attempts to bring uniformity among the bourses in a segment which came under its regulatory purview only three years ago. The capital markets regulator has decided to meet the chief regulatory officers (CROs) of all six exchanges that offer commodity derivatives trading once every quarter to discuss regulatory and compliance matters in order to enhance uniformity amongst the bourses.
Diversified segment This assumes significance as, unlike the equity segment with two main bourses and identical product offering, the commodity derivatives segment is quite diversified with each exchange having created a niche in a certain category of commodities. ‘Need better oversight’ “Commodity market is not linear like equities and hence requires more coordination and oversight,” said a person familiar with the SEBI initiative.
“Each bourse has specialised in its own set of commodity offerings and the dynamics of every commodity differs due to the nature of the underlying spot. There is uniformity among equity exchanges due to the regulatory oversight over the past many years. That needs to be replicated in the commodity segment,” he added.