In common parlance commodities means goods and products of all types. However, the Foreign Currency Regulation Act, as deigned by the Government of India defines commodities as ‘every kind of movable property other than actionable claims, money and securities’.
There is something known as futures trading which is prearranged in the goods or commodities that the Central Government has permitted after much contemplation.
Presently, all commodities produced in the sectors of the following origination have been sanctioned futures trading. This has been done under the guidelines provided FCRA to the exchanges.
The sectors are:
-Agricultural, which encompasses plantations
All national exchanges have been recognized and authorized to function by the Central Government. The national commodities exchanges are permitted to conduct trading of the permissible commodities listed here:
Bullion, which includes
Precious metals such as gold and silver