The Securities and Exchange Board of India (SEBI) has approved the launch of seven new derivates products for the Indian Stock markets. SEBI Chairman Mr. M. Damodaran is confident that the new derivates products will be welcomed by traders and the trading volumes will pick up.

The derivates products will offer options of mini-contracts for stock market indices. Stock options with a longer period are coming. SEBI will also introduce volatility index and bond index. There will be more options for traders in F&O markets.

SEBI committee on derivates has to give a final permission to the recommendations made by the Board in its meeting.

Mr. Damodaran said, “It is our intention to see that India’s market becomes largely an onshore market and to see that parts of the market do not indefinitely continue to be offshore. These products are also expected to bring transactions based on private-synthetic products to an exchange-traded transparent mechanism with appropriate regulatory supervision”

Indian stock markets are trading near its all-time high. The trading volumes are high and markets are showing lot of volatility. The new products from SEBI will raise the trading volumes even more.