Additional commodities as Eligible Liquid Assets for Commodity Derivatives Segment
Summary
SEBI expands the list of eligible liquid assets for commodity derivatives segments to include diamonds, base metals, and alloys. The circular specifies minimum haircuts of 30% for base metals and alloys and 40% for diamonds. It also revises the haircut for steel to 30% and mandates that collateral quality must match contract specifications.
Text
Diamond, Base metals and Alloys included in the list of permissible liquid assets subject to concentration limits and Minimum Haircut.
Base metals and Alloys have a minimum haircut of 30%.
Diamond has a minimum haircut of 40%.
Steel being an Alloy, minimum haircut stipulated for Steel stands revised from current applicable level of 60% to 30%.
All commodities to be accepted as collateral should be of same quality specification which is deliverable under the contract specification of commodity derivatives being traded on the Exchange.
This circular is issued in exercise of the powers conferred under Section 11(1) of the Securities and Exchange Board of India Act 1992, read with Section 10 of the Securities Contracts (Regulation) Act, 1956.
This circular shall be effective from the date of the circular.
Source: SecMarx — Additional commodities as Eligible Liquid Assets for Commodity Derivatives Segment. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.