SEBI Extends Agro Derivatives Trading Ban to March 2027

SEBI agro derivatives trading suspension

PR No. 21/2026; Dated: 27.03.2026

1. Background of the Suspension

Earlier, SEBI directed stock exchanges with a commodity derivatives segment to suspend trading in derivative contracts for seven agro commodities for a period of one year. This step was taken as part of regulatory measures to address market concerns.

2. Subsequent Extensions

Following the initial suspension, SEBI extended the restriction multiple times:

  • First extension up to December 20, 2023
  • Further extended to December 20, 2024
  • Then extended to January 31, 2025
  • Subsequently extended to March 31, 2025
  • Again extended to March 31, 2026

3. Latest Extension

SEBI has now further extended the suspension of trading in derivative contracts for these agro commodities until March 31, 2027.

4. Key Takeaway

The continued extensions indicate SEBI’s cautious approach towards regulating commodity derivatives trading in select agro commodities, ensuring market stability and preventing excessive volatility.

Click Here To Read The Full Press Release

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