Business

Sebi Extends Ban on 7 Commodity Derivatives Trading to March 2026 to Stabilize Prices

Markets Regulator Sebi Extends Trading Suspension

In a significant move to control price volatility, the Securities and Exchange Board of India (Sebi) has extended the suspension of derivatives trading in seven agricultural commodities, including wheat and moong, until March 2026. This decision aims to curb excessive speculation and stabilize prices in the commodity markets.

Sebi extends suspension of trading in 7 commodity derivatives until March 2026

List of Affected Commodities

The suspension affects paddy (non-basmati), chana, crude palm oil, mustard seeds and its derivatives, and soybean and its derivatives. Initially imposed in December 2021, the ban has been extended multiple times, reflecting ongoing concerns over market stability and inflation.

Impact on Trading

While existing positions can be squared up, no fresh futures trading is permitted in these commodities for the duration of the suspension. This measure is part of Sebi's broader strategy to protect consumers from sharp price fluctuations in essential agricultural products.