Mumbai, (IANS) : Securities markets regulator SEBI on Tuesday allowed exchanges to commence options trade in commodities futures on a pilot basis.

“It is decided that initially, on a pilot basis each exchange shall be allowed to launch options on futures of only one commodity that meets the criteria prescribed,” the securities market regulator said in a circular.

“The commodity derivatives exchanges willing to start trading in options contracts shall take prior approval of SEBI for launching such contracts.”

According to SEBI circular, only those commodities can be traded through the specified options which were amongst the top five ‘Futures Contracts’ in terms of total trading turnover value of the previous twelve months.

“The average daily turnover of underlying futures contracts of the corresponding commodity during the previous twelve months, shall be at least: Rs 200 crore for agricultural and agri-processed commodities, Rs 1,000 crore for other commodities,” the circular pointed out.