Master Circular for Commodity Derivatives Segment

SEBI/HO/MRD/MRD-PoD-1/P/CIR/2023/136 · 2023-08-04 · SEBI Market Regulation Department

Summary

This section establishes the Master Circular for the Commodity Derivatives Segment, consolidating previous circulars issued by SEBI up to March 31, 2023. It defines key terms such as commodity derivatives exchanges and specifies that the circular comes into force upon issuance while rescinding prior specific circulars. The text includes transitional provisions ensuring continuity of actions taken under rescinded circulars and mandates compliance from all stock exchanges and clearing corporations. This section outlines the regulatory framework for commodity derivatives, covering position limits, market participants, and specific product designs for options and indices. It details comprehensive risk management protocols, including margin monitoring, default waterfalls, and interoperability among clearing corporations. Additionally, it establishes norms for delivery, settlement, warehousing accreditation, investor protection funds, and grievance redressal mechanisms. This section outlines the regulatory framework for newly recognized stock exchanges and clearing corporations, including statutory committees and exit policies. It establishes comprehensive requirements for trading softwa

Text

In order to ensure availability of comprehensive information mentioned in various circulars pertaining to commodity derivatives market or segment at one place, the Securities and Exchange Board of India (“SEBI”) has been issuing Master Circulars. This Master Circular has covered various circulars issued till March 31, 2023.

The terms “National Commodity Derivatives Exchanges” or “Regional Commodity Derivatives Exchanges” or “Commodity Derivatives Exchanges” may be read as stock exchanges and stock exchange(s) shall mean recognized stock exchange(s) having commodity derivatives segment.

This Master Circular shall come into force from the date of its issuance. The Circulars mentioned in Annexure –ZG of this Master Circular shall stand rescinded with the issuance of this Master Circular... With respect to the directions or other guidance issued by SEBI, as specifically applicable to National Commodity Derivative Exchanges, the same shall continue to remain in force...

anything done or any action taken or purported to have been done or taken under the rescinded circulars... shall be deemed to have been done or taken under the corresponding provisions of this Master Circular

any application made to SEBI under the rescinded circulars, prior to such rescission, and pending before it shall be deemed to have been made under the corresponding provisions of this Master Circular

the previous operation of the rescinded circulars or anything duly done or suffered thereunder, any right, privilege, obligation or liability acquired, accrued or incurred under the rescinded circulars... shall remain unaffected as if the rescinded circulars have never been rescinded.

This Master Circular is issued in exercise of the powers conferred by Section 11 (1) of the Securities and Exchange Board of India Act, 1992... All Stock Exchanges and Clearing Corporations with Commodity Derivatives Segment shall ensure compliance with this Master Circular including any subsequent amendment thereto or supersession through any circular/ master circular.

DPL for Commodity futures contracts which are based on non-agricultural goods

General guidelines for Position Limits

Position limits for Agricultural Commodity Derivatives

Position limits for Non-Agricultural Commodity Derivatives

Position Limit for Hedgers

Source: SecMarx — Master Circular for Commodity Derivatives Segment. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.