The National Stock Exchange (NSE) on Friday launched commodity derivatives segment.

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Vikram Limaye, MD & CEO of NSE, told CNBC-TV18, “In India, gold market is a large one and if it is developed in right way, the kind of contracts and volumes that get traded on the exchanges can be significant multiple of where we are today."

"Over time we should aim to be price determinant of gold in the country, given the dynamics surrounding gold in India," he said.

Therefore, “Our objective into this segment is to take long-term view of commodities market and to develop the market in right way in terms of getting the hedging community to participate and to make sure that we have the right standards in India,” he said.

Limaye said they have already filed for product approvals with the SEBI for next set of derivatives.

"Product approvals are filed for crude oil in energy space and copper in base metal space. The second phase of commodity contracts will be launched after receiving SEBI nod," he said.

Sharing his rationale on why it would be beneficial for members to trade commodities on NSE, he said, "because they are already trading on other segments on the exchange". He also confirmed that the exchange hasn’t announced any market making scheme for commodities.

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First Published:Oct 12, 2018 12:20 PM IST