Master Circular for Commodity Derivatives Market
Summary
This section introduces the SEBI Master Circular for the Commodity Derivatives Market, consolidating previous circulars issued up to April 30, 2021. It clarifies that references to national or regional commodity exchanges are replaced by 'stock exchanges' having a commodity derivatives segment. The document establishes that original circular provisions prevail in case of inconsistency and supersedes the previous Master Circular dated July 10, 2020. This section outlines the regulatory framework for commodity derivatives, covering risk management, contract modifications, and delivery settlement processes. It establishes detailed norms for warehousing providers, including accreditation, financial soundness, and operational standards. Additionally, it addresses investor protection funds, grievance redressal mechanisms, and governance requirements for exchanges and clearing corporations. This section serves as the Table of Contents for Chapter 15, listing regulations regarding co-location, system audits, business continuity, and cyber security. It also provides an index of Annexures covering various disclosure formats, position limits, and settlement fund parameters. Finally, it presen
Text
Securities and Exchange Board of India (SEBI) has been issuing various circulars/directions from time to time for commodity derivatives market.
In order to ensure availability of comprehensive information mentioned in the circulars at one place, SEBI has been releasing Master Circular by compiling all the circulars issued by the department till the date of Master circular.
Further, references in the circular to the Statutes/Regulations which now stand repealed have been suitably updated.
Efforts have also been made to incorporate certain applicable provisions of existing circulars issued by other departments of SEBI relevant to commodity derivatives markets.
The term “national commodity derivatives exchanges” or “regional commodity derivatives exchanges” or “commodity derivatives exchanges” have been suitably replaced with stock exchanges; wherein stock exchanges means recognized stock exchange having commodity derivatives segment.
It is hereby clarified that in case of any inconsistency between the Master Circular and the original applicable circular, the content of the original circular shall prevail.
This Master Circular shall supersede previous Master Circular SEBI/HO/CDMRD/DNPMP/CIR/P/2020/118 dated July 10, 2020.
Risk Management
Design of Commodity Indices
Risk Management Framework
Mechanism for regular monitoring of and penalty for short-collection/ non-collection of margins from clients
Permission for Trading in Futures Contracts
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Source: SecMarx — Master Circular for Commodity Derivatives Market. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.