Sebi extends suspension of buying and selling in 7 commodity derivatives till Mar 2026

New Delhi, Markets regulator Sebi on Monday prolonged the suspension of derivatives buying and selling in seven agricultural commodities, together with wheat and moong, for a yr until March 2026 in a bid to rein in costs. The opposite 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 final till December 20, 2022. But it surely was subsequently prolonged for a further yr till December 20, 2023, then once more till December 20, 2024. The suspension was once more prolonged until January 31, 2025, after which for 2 months until March 2025.

Now, the regulator has determined to additional prolong the suspension for 2 extra months, maintaining the buying and selling restrictions in place till March 31, 2026.

“In continuation of the mentioned instructions, the suspension in buying and selling within the above contracts has been additional prolonged until March 31, 2026,” Sebi mentioned in a press release.

The suspension permits squaring up of current positions in these commodities, however no recent futures buying and selling is permitted for a yr.

This transfer goals to curb extreme hypothesis and volatility within the commodity markets, notably in these important agricultural merchandise, which have a big impression on meals costs and inflation.