India hesitates on physical settlement for commodity options

Sebi wrestling with shoddy warehousing infrastructure

India tea
Tea is one of India's major agricultural products

India's securities regulator is gearing up to allow trading in commodity options, but deficient infrastructure means that it is reluctant for the financial instruments to be physically settled, according to sources close to the discussions.

Cash-settled commodity options are easier to regulate because they do not require warehousing facilities. But Jayant Nalawade, chief of operations and compliance at National Commodity & Derivatives Exchange (NCDEX), the country's main agricultural exchange

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