New Delhi: Markets watchdog Sebi on Thursday said that recognised stock exchanges having a commodity derivative segment will be permitted to introduce options on commodity indices. The move is part of efforts to have more products in the commodity derivatives market.

“The recognised stock exchanges with a commodity derivative segment, willing to introduce trading in options on commodity indices shall take prior approval of Sebi for the same,” it said in a circular.

Further, the stock exchanges should submit at-least past three-years data of the index constructed along with data on monthly volatility, roll over yield for the month and monthly return while seeking approval.

“On approval, the stock exchange(s) shall also publish the above data on their website before launch of the contract,” the circular said.