Agri-Commodities Futures Trading Ban- Purpose & Results
From Current Affairs Notes for UPSC » Editorials & In-depths » This topic
On December 20th, the SEBI announced a decision to extend the ban on derivatives trading of 7 agricultural commodities, in a bid to fight the rising prices.
What are agricultural commodity futures?
- Agricultural commodity future is a market-based instrument for trading certain agricultural commodities, which fall under the category of soft commodities. These future contracts are basically agreements to buy/ sell an agricultural commodity at a future date at a set price.
- The current method of agricultural commodity trading has been practiced in India since 2002.
- There are 6 exchanges where such trade is carried out. The most important of these are:
- MCX/ Multi-Commodity Exchange
- NCDEX/ National Comm
Related Posts
If you like this post, please share your feedback in the comments section below so that we will upload more posts like this.
Responses