Sebi extends suspension on trading in 7 agri commodity derivatives till Mar 2027

Markets regulator Sebi on Friday extended the suspension of derivatives trading in seven agricultural commodities, including wheat, moong and paddy (non-basmati) by another year till March 31, 2027, in a bid to rein in prices.The other commodities under suspension include chana, crude palm oil, mustard seeds and their derivatives, and soybean, along with its derivatives.

The directive was originally issued on December 19, 2021, suspending trading in these contracts until December 20, 2022. Since then, the restriction has been extended multiple times — first till December 20, 2023, then December 20, 2024, followed by January 31, 2025, March 31, 2025, and subsequently March 31, 2026.
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The suspension allows market participants to square off existing positions but prohibits any fresh futures trading in these commodities.

The move is aimed at curbing excessive speculation and volatility in key agricultural commodities, which play a crucial role in determining food prices and inflation.

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