Bombay Stock Exchange became the first stock exchange in India to launch commodity derivatives contract in gold and ______.
- A.Diamond
- B.Silver
- C.Platinum
- D.Equity
Show answer
Correct answer: B. Silver
Explanation
The correct answer is B, Silver. The Bombay Stock Exchange became the first stock exchange in India to enter commodity derivatives when it launched futures contracts in gold and silver on 1 October 2018. This followed the decision of the Securities and Exchange Board of India to allow a single exchange to deal in both securities and commodities from that date, ending the wall that had kept stock exchanges and commodity exchanges apart. BSE, set up in 1875, is Asia's oldest stock exchange, its benchmark index is the Sensex and it works under SEBI. A is wrong because diamond is not traded as a commodity derivative on the exchange. C is wrong because platinum was not part of that launch. D is wrong because equity is a security, not a commodity, and equity derivatives had been traded long before 2018. Exam tip: BSE founded in 1875, Asia's oldest exchange; gold and silver commodity derivatives from 1 October 2018; the regulator is SEBI.