Current Affairs

BSE becomes first stock exchange to launch Commodity Derivative Contracts

India's leading bourse Bombay Stock Exchange (BSE) became the first stock exchange in the country to launch commodity derivative contracts.
BSE becomes first stock exchange to launch Commodity Derivative Contracts
  • It has launched contracts in popular commodities like gold (1kg) and silver (30kg).
  • This launch comes after unified exchange regime kicked off from 1 October 2018.
  • The launch of commodity derivatives platform on BSE will help efficient price discovery, reduce timelines and make it cost effective.
  • BSE has also applied for launching of crude oil and copper commodity contracts with capital markets regulator Securities and Exchange Board of India (SEBI).
  • Subsequently, it is also planning to launch more agri commodities contracts.

Interesting to know:

  • So far, commodity contracts were only available on commodity exchanges like MCX and NCDEX, the two specialised commodity derivatives exchanges in in the country. 
  • Recently SEBI has allowed India's top two stock exchanges BSE and NSE to launch commodity derivatives trading under unified exchange regime wherein stock exchanges will be allowed to offer trading in commodities derivatives.

About the Bombay Stock Exchange (BSE):

  • BSE is the oldest stock exchange in Asia formed by eight native stock brokers association in 1875 located at Dalal Street, Mumbai.
  • It had received temporary approval from Bombay government in 1927 and permanent approval by Indian Government on 31 Aug 1957.
  • Today it is 10th largest stock market in the world by market capitalization at $1.7 trillion and has more than 5,000 companies listed on it.
  • Its iconic building named Phiroze Jeejeebhoy Towers, Dalal Street in Mumbai, Maharashtra has received an image trademark under the Trade Marks Act, 1999.

Question:

Q. India's leading bourse Bombay Stock Exchange (BSE) became the first stock exchange in the country to launch what?
a. Equity Derivative Contracts
b. Commodity Derivative Contracts
c. Agri Derivative Contracts
d. None of the above
BSE becomes first stock exchange to launch Commodity Derivative Contracts BSE becomes first stock exchange to launch Commodity Derivative Contracts Reviewed by Inderjeet Virdi on October 03, 2018 Rating: 5

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