SEBI proposes dropping 'close-to-the-money' label from commodity options contracts
Securities and Exchange Board of India, or SEBI, is looking to drop the "close-to-the-money" (CTM) label from commodity options contracts.
The idea is to make things less confusing for traders and cut down on uncertainty for sellers.
Right now, options are sorted into in-the-money, out-of-the-money, or CTM, but SEBI thinks we can do without the extra category.
SEBI seeks feedback on reforms
This proposal is part of a bigger cleanup: SEBI also wants to merge overlapping rules, move some paperwork online, and make compliance less of a hassle.
They're suggesting fewer mandatory meetings for nonagricultural commodities and giving exchanges more freedom with position limits.
Plus, there are tweaks coming for agricultural derivatives to boost liquidity.
If you have thoughts on these changes, SEBI is open to feedback until June 4.