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MUMBAI: Market regulator Sebi has held back the applications for launch of petrol and diesel futures by commodity exchanges MCX and ICEX, persons aware of the development told ET.
The regulator is learnt to have sent letters to both the bourses recently to the effect that it was not considering their applications for launch of petrol and diesel contracts for now.
The regulator informally raised concerns over the “sensitivity” of the commodities, given the steep rise in prices of the fuels and a high probability of government intervention in case the futures were launched and prices kept rising, said one of the persons.
Officials from both MCX and ICEX were not immediately available for comment.
However, another person privy to the discussions said the regulator raised the ban of pulses like urad and tur futures by the government back in 2007 following a drought and huge rise in their prices.
Though a panel led by noted economist and then planning commission member Abhijit Sen concluded there was no clinching evidence to show futures trading stoked price inflation, the government has disallowed re-launch of pulses which are considered essential commodities and their impact on the common man.
In the case of petrol retail prices in Delhi and Mumbai have risen by 13 per cent to Rs 77.58 a litre and 9.2 per cent to Rs 85 respectively from a year ago.
Diesel prices in the two metros have risen by 21 per cent each from a year ago, according to the petroleum planning and analysis cell of the petroleum ministry.
Persons privy to the discussions also said the sensitivity of such items tends to rise in the run up to an election year.
Sebi regulates four commodity futures exchanges.
Of these metals and energy bourse MCX is the largest, followed by agri exchange NCDEX, plantations bourse NMCE and ICEX.
Regulatory data show that market share of MCX was 92 per cent of total turnover of Rs 5.59lakh crore in June.
That of NCDEX was 7.5 per cent, NMCE (0.43 per cent) and ICEX (0.05 per cent) .
