National Stock Exchange (NSE) is going to expand its commodity derivatives segment. NSE will launch dated Brent crude oil futures contracts from 13 April 2026. For this, the exchange has received approval from market regulator SEBI. The introduction of this new contract will provide Indian traders and investors a new means to align with global oil benchmarks and manage risk. BRCRUDEOIL symbol will be used for Brent crude. According to the circular issued by NSE, this new contract will be traded under the BRCRUDEOIL symbol. This contract will be based on SP Global Energy’s dated Brent assessment. The exchange said that Brent crude is considered the most reliable for calculating crude oil prices across the world, hence bringing it on the platform will be beneficial for market participants. You will be able to trade till 11:55 pm. NSE has kept the trading timings for this contract quite flexible, so that it can take advantage of the ups and downs of the global market. Trading days: Monday to Friday. Time: 9:00 AM to 11:30 PM or 11:55 PM (depending on US Daylight Saving Time). Listing: These contracts will be listed on monthly basis. Settlement will be in rupees, RBI rate will be taken into account. The most important thing for traders is that these contracts will be cash-settled. That means physical delivery of crude oil will not have to be taken at the time of expiry. To decide the final settlement price, the monthly average rate of dated Brent crude oil will be taken as the basis. RBI’s USD-INR reference rate will be used to convert it into Indian rupees. Why is this contract special? The exchange says that the main objective of this move is to provide international level hedging tools to Indian market players. Since India imports most of its crude oil needs. In such a situation, changes in global prices have a direct impact on Indian companies. With the help of this futures contract, companies and big investors will be able to protect themselves from price risk. Strict rules for quality NSE has clarified that the quality specifications in these contracts will be the same as decided by SP Global Energy. With this, the credibility of the contract will remain at par with international rules. Market experts believe that this step of NSE will increase liquidity in the commodity segment and traders will get another strong option apart from MCX. Also read this news… Value of 7 out of top-10 companies decreased by ₹ 1.75 lakh crore: Reliance was the top loser, value decreased by ₹ 89 thousand crore; The market cap of HDFC Bank also decreased. In terms of market cap, the value of 7 of the country’s 10 largest companies decreased by Rs 1.75 lakh crore in last week’s trading. This decline has occurred due to tension in the Middle East and Israel-Iran war. During this period the value of Reliance Industries decreased the most. Reliance’s market cap declined by Rs 89,720 crore to Rs 18.24 lakh crore. Read the full news…
Source link
[ad_3]
Crude oil trading will start on NSE from April 13: Got approval from SEBI, will be able to hedge according to the international market; Settlement will be in cash
