Sebi Extends Commodity Derivatives Ban to March 2026

New Delhi, Mar 24 (PTI) Markets regulator Sebi on Monday extended the suspension of derivatives trading in seven agricultural commodities, including wheat and moong, for a year till March 2026 in a bid to rein in prices.

The other agricultural commodities suspended by Sebi are paddy (non-basmati), chana, crude palm oil, mustard seeds and its derivatives and soybean and its derivatives.

The directive was initially issued on December 19, 2021, and the suspension was first set to last until December 20, 2022. But it was subsequently extended for an additional year until December 20, 2023, then again until December 20, 2024. The suspension was again extended till January 31, 2025, and then for two months till March 2025.

Now, the regulator has decided to further extend the suspension for two more months, keeping the trading restrictions in place until March 31, 2026.

"In continuation of the said directions, the suspension in trading in the above contracts has been further extended till March 31, 2026," Sebi said in a statement.

The suspension permits squaring up of existing positions in these commodities, but no fresh futures trading is permitted for a year.

This move aims to curb excessive speculation and volatility in the commodity markets, particularly in these essential agricultural products, which have a significant impact on food prices and inflation.