“We have received the ‘no objection’ from the ministry,” the Times of India quoted Sanjit Prasad, MD, ICEX as saying.
However, the move would not be able to fructify until the ICEX gets the in principal nod from Securities and Exchange Board of India (SEBI).
“If SEBI gives the go ahead, the exchange is prepared to launch the products within a day,” Prasad said.
What are FUTURES and how it may benefit consumers?
FUTURES are financial contracts which require the buyer and seller to purchase and sell petrol and diesel at a pre-decided future price and date. Once launched, FUTURES will allow consumers to buy petrol and diesel at a fixed price and take delivery at future date.
It means if a consumer is buying petrol today at a particular price but takes delivery after 15 days, then he will have to pay the price of today even if the price is higher on the day of delivery.
Earlier, the prices of petrol and diesel continued to skyrocket on the 16th consecutive day on Tuesday. Petrol crossed Rs 86-mark for the first time in the country and was being sold at Rs 86.24 per litre in Mumbai. In Delhi, petrol touched Rs 78.43 per litre.
The prices of Diesel also continued their upward trend and stood at Rs 69.31 per litre in Delhi and Rs 73.79 per litre in Mumbai. The prices of the two key petroleum products—petrol and diesel—are soaring due to the high excise duty levied by the central and state governments.
Union Minister of Petroleum and Natural Gas, Dharmendra Pradhan had assured that the government was working towards a "holistic strategy" to find a long-term solution. FUTURES could be that "holistic strategy" of the government.