The Securities and Exchange Board of India (Sebi) on Wednesday approved a proposal to allow options trading in commodity derivatives, which could potentially pave the way for a much wider basket of products and improve farmers’ ability to hedge the risk of price fluctuations in their produce. The regulator also gave its nod for a single licence for both equity and commodity brokers, which will help brokerages cut costs.Allowing options trading is a “very big step towards further deepening the commodities derivatives market”, Sebi chairman Ajay Tyagi said after a meeting of the regulator’s board in Mumbai.

Source - http://www.financialexpress.com