The National Commodity & Derivatives Exchange (NCDEX) is going to launch trading in castor seed futures. The castor seed was earlier trading in NCDEX, but due to price short, nearly a year after its trade was suspended on the directions of SEBI on suspected exploitation and concentration of trades, however, it re-launches on Thursday, 5th January 20106. Castor seed contracts expiring in February, March, April and May, would be available for trading from Friday.
NCDEX In a statement said, that the exchange has received consent from SEBI for re-launching of the contract after its suspension in January 2016.
Meantime, MCX commodity exchange has also got SEBI’s approval for launch of castor seed contracts. The MCX will launch the contracts tomorrow.
On granting the approvals, SEBI has asked the both exchanges to ensure that the quality of commodities deposited meets all compliance requirements under the rules including that of Food Safety & Standards Authority of India (FSSAI).
The exchange said that castor seed futures contract meets a larger economic purpose since it is a crucial risk mitigation tool for castor seed, oil processors and exporters who need to hedge their exposure to price risk.