Finance Minister Arun Jaitley on Sunday launched a new derivatives tool for options trading in Guarseed on the country’s second largest futures market, National Commodity and Derivatives Exchange (NCDX). The Finance Minister said that this initiative of NCDEX will benefit the farmers. Jaitley said, “It is one of the major initiatives in the development of our agricultural market. Farmers will have the option of doing business in financial instrument.”
We have come out of absence: Jaitley
The Finance Minister said, “We have come out of the absence of the farmers. The farmers have brought a big change.” The farmers should get the benefit of development. This is our priority. ” Addressing the program through video, Commerce Minister Suresh Prabhu said that this initiative will make it possible for farmers to get better value of crops and also for consumers, agricultural products will be available at reasonable prices.
“There should be transparent arrangement for trading”
The Finance Minister said, “There should be transparent arrangement for trading, so that farmers can sell their crops in any part of the country.” NCDEX MD and CEO Sameer Shah said, “With the option of saving the farmers during the fall of prices, they will provide an opportunity to sell their products at a higher price during the price hike, in this way, the price fluctuations Regardless, this tool will prove to be beneficial for farmers in every sense. ”
Agri commodity:
This is the first of any agri commodity in India, while the second trading option is the tool in all the commodities. Earlier on October 10 last year, similar trading options tool in gold was launched on the country’s largest commodity exchange Multi Commodity Exchange (MCX).
Sanctioned by SEBI:
Commodity market regulator, Indian Securities and Exchange Board (SEBI) has already approved the options trading tool designed by NCDEX, the largest exchange of agri commodities in the country.
Trading will be on the lines of the stock market
Trading Options is a derivatives tool in which the levy has the right to buy but the instrument provided for them does not have the obligation to sell at a particular cost or before the fixed date. The right to call the rights of the call option and the sale is called put options. The options trading options are European and there are options traded deals available in the deals, which are currently in NCDEX, in February, March and April.
