The Multi Commodity Exchange of India (MCX) has proposed launching weekly index options for its bullion derivative index, the MCX Bulldex, according to reports from Mint. The proposal is currently in the early stages of discussion within the commodity derivatives advisory committee (CDAC) of Sebi. As reported by Mint, the matter is being discussed but no decision has been taken yet, with weekly options posing risks in commodities and potentially hurting retail investors. The discussions are still in preliminary stages and the committee is nowhere near a final decision.
The MCX Bulldex is based on the MCX iComdex Bullion Index, which tracks the prices of gold and silver. According to Mint, the Bulldex is settled in cash and involves no physical delivery, unlike standalone gold and silver derivatives. A second person familiar with the matter told Mint that such a contract will draw volumes currently absent on the monthly MCX Bulldex futures and options contracts. MCX currently runs India's largest commodity derivatives segment with a market share of more than 99%, having started operations in November 2003.
Sebi has tightened trading in equity derivatives since November 2024, following massive losses among retail investors. As reported by Mint, a September 2024 Sebi study found 11.3 million individual traders lost ₹1.81 trillion from trading futures and options over FY22-24. Another study in July 2025 found that retail investors' losses surged 41% to ₹1.06 trillion in FY25 from ₹74,812 crore in FY24. However, more recent data showed Sebi's regulatory measures appear to be bearing fruit, with the combined premium turnover growth of NSE and BSE index options slowing to 9.3% year-on-year in FY26 from 10.5% in the preceding fiscal.
MCX shares closed 0.29% higher at ₹2,791.4 on the NSE on Thursday, having vastly outperformed the Nifty Midcap 50 index over the past year. According to Mint, the stock has generated an absolute return of 127.52% over this period against the index's mere 8.98% gain. A former regulatory official told Mint that receiving permission for weekly commodity index options will be a 'tough ask', given the losses investors have suffered in weekly equity variants.
Commodity derivative indices are currently illiquid, in contrast to their equity counterparts like the Nifty and Sensex, where highly popular weekly options launched by the NSE and BSE attract significant market participation. As reported by Mint, CDAC members are not very enthusiastic about the weekly options proposal due to what Sebi observed with weekly options in equities and the losses made by retail investors. The regulatory panel is discussing whether MCX can ensure the weekly index options bring both breadth and depth in terms of multiple commodities spread over several months while maintaining adequate liquidity in the market.
