BSE Sensex can offer commodities option trading
The leading bourses BSE and NSE can offered commodity products from October 2018, following an approval from SEBI for the convergence of stock and commodity bourses. Basically, SEBI has allowed all exchanges to offer all products including stock, commodity and currency, which also means that MCX can offer equity trading platform. On the other hand, with this move, individuals may trade in all asset classes using one account.
Both the exchanges had sought permission to launch commodity trading after Securities and Exchange Board of India (SEBI) took over the regulation of the commodity markets in 2015. Then the regulator felt that the commodity market needs to have better risk-management practices and achieve more depth.
BSE's entry into the commodity trading business will give a tough competition to the Multi Commodity Exchange (MCX). In September 2016, SEBI allowed the MCX to launch options contracts in commodities. While NSE with 15% stake is a promoter of the National Commodity & Derivatives Exchange Limited (NCDEX). The commodity exchanges including MCX and NCDEX offer trading in base metals, precious metals, energy and agricultural commodity futures.
On Thursday, the stock of BSE Limited closed at Rs. 944.00 per share, up by Rs. 33.05 or 3.63 per cent, while MCX close at Rs. 938.30 per share, down by Rs. 4.90 or 0.52 per cent.