SEBI nod for futures trading on 31 stocks

NEW DELHI, SEPT. 4. The market regulator Securities and Exchange Board of India today gave 'in-principle' clearance for introducing futures trading on 31 individual stocks where option trading is now permitted.

The move is widely seen as a measure to relaunch the badla system in selected scrips. The decision was taken at SEBIi's board meeting here which also decided to rationalise the turnover fee structure for option contracts, a SEBI release said.

The carry forward trading, including badla, was banned by the market regulator from July 2 to check volatility in the stock market which was facing a turbulent situation.

The advisory committee on derivatives had been asked to work out details including the timeframe for its launch and on the availablity of infrastructure in bourses.

A final approval for the introduction of futures trading would be given by the board shortly on receipt of the recommendations by the committee.

Market analysts said although the badla systems continues to be banned, the measure amounted to its reintroduction in a different form.

- PTI

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Section  : Business
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