Industry Odisha Bureau, April 24: Planning to launch weekly index options for its bullion derivative index called Bulldex, the Multi Commodity Exchange of India (MCX) has reportedly submitted a formal proposal with the Securities and Exchange Board of India (SEBI) seeking the statutory regulatory body’s seal of approval.
Sources informed that MCX’s such a proposal is under scrutiny of SEBI’s Commodity Derivatives Advisory Committee (CDAC), but no final decision has been taken yet.
Sources added that the MCX proposal is being meticulously scrutinised delving into the pros and cons, because Bulldex weekly options are likely to “pose a risk in commodities and may hurt retail investors”.
Sources reported: “SEBI has tightened trading in equity derivatives since November 2024, following massive losses among retail investors”.
Sources further reported: “Commodity derivative indices are currently illiquid, in contrast to their equity counterparts like the Nifty and Sensex, where highly popular weekly options launched by the NSE and BSE attract significant market participation”.
It has also been reported that SEBI’s regulatory measures are being fruitful, because data from National Stock Exchange of India Limited (NSE) and Bombay Stock Exchange (BSE) reflected: “The combined premium turnover growth of NSE and BSE index options slowed to 9.3% year-on-year in FY26 from 10.5% in the preceding fiscal”.
Sources apprehended that it would be an uphill task for MCX to receive SEBI’s go-ahead signal to its proposed weekly Bulldex because the investors have reportedly suffered losses in the weekly equity variants.
Notably, “the MCX Bulldex is based on the MCX iComdex Bullion Index, which tracks the prices of gold and silver. The Bulldex is settled in cash and involves no physical delivery, unlike the standalone gold and silver derivatives, which require physical delivery”.
