In a circular on 21 August, the National Stock Exchange (NSE) said that it has received SEBI's nod for 'options' in goods contracts on the underlying silver spot price for trading in the commodity derivatives segment. The move is aimed at offering new products to commodity market participants and to deepen the market ecosystem.
"Exchange is pleased to inform its members that having received approval from Sebi, options in goods contracts on underlying silver spot price would be available for trading in commodity derivatives segment with effect from September 1, 2020," the circular said.
Earlier, NSE had launched 'gold mini options' on 8 June.
An options contract gives the buyer or holder of the contract the right (but not the obligation) to buy or sell the underlying asset at a pre-determined price within or at the end of a specified period.