New Delhi: In its endeavour to offer new products to commodity market participants and to deepen the market ecosystem, the BSE on Monday launched options on goods contracts like gold mini and silver kilo.


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The two contracts launched are gold mini (100 gram) and silver kilo, the exchange said in a statement.


These contracts were launched by S K Mohanty, whole-time member of markets regulator Sebi, who emphasised that this is the right time for the launch of these contracts.


"The options on goods contracts shall enable small-time jewellers, retailers to come forward and hedge their price risk on the BSE's commodity platform," said Ashishkumar Chauhan, MD and CEO of the BSE.


Sameer Patil, chief business officer of the BSE, said these contracts are deliverable contracts and shall terminate into physical deliveries at the time of expiry.


The National Stock Exchange will introduce options on gold mini from June 8.


Options contract gives the buyer or holder of the contract the right (but not the obligation) to buy or sell the underlying asset at a predetermined price within or at the end of a specified period.