SEBI examining Feasibility of Intangibles

Published on August 01, 2019
Current context: SEBI will examine the feasibility of allowing derivative contracts based on intangibles (like weather or freight) in Indian commodity segment.
SEBI examining Feasibility of Intangibles 
  • With this, SEBI is attempting to make the commodity segment more efficient and investor-friendly.
  • SEBI will also look into an exchange-traded fund (ETF is market security that tracks an index, bond, basket of assets or commodity, In this case, ETF is a commodity).
  • It will increase the hedger’s participation and increase delivery based settlement.
  • A five-member working group constituted to look at a specific issue related to the commodity segment, will submit a report to the Commodity Derivatives Market Regulatory Department (CDMRD) by August.
  • After which SEBI will forward selected proposal to Commodity Derivatives Advisory Committee (CDAC) for final screening after which it will be submitted to SEBI board.


Q.1 What is the opposite of hedger in the derivative market or who complements hedger in derivative market?
a. Buyer
b. Seller
c. Speculator
d. Investor

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