India proposes interim cash settlement to boost liquidity in agri derivatives

Yahoo Finance
2026.05.12 12:28
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India's markets regulator has proposed allowing select agricultural commodity derivatives to initially trade as cash-settled instruments to boost liquidity. The Securities and Exchange Board of India (SEBI) suggested that these contracts could transition to physical delivery after meeting certain trading volume or open interest thresholds, or after two years. Commodities like maize, groundnut, and chilli may be included in a pilot program. This interim cash settlement aims to enhance participation without marking a policy shift away from physical settlement. Public comments are invited until June 2.