Eligibility criteria for launching Options with Commodity Futures as underlying by Stock Exchanges having commodity derivative segments.
Summary
SEBI has revised the eligibility criteria for launching Options on Commodity Futures by lowering the average daily turnover requirement for agricultural and agri-processed commodities to INR 100 crore. This amendment modifies paragraph 6.1.2 of the SEBI Master Circular dated August 4, 2023, which previously mandated a higher threshold. The revised criteria apply to contracts introduced on or after June 1, 2024, requiring Stock Exchanges to update their bye-laws accordingly.
Text
average daily turnover of underlying futures contracts of the corresponding commodity during the previous twelve months shall be INR 100 crore instead of existing INR 200 crore for agricultural and agri-processed commodities
The average daily turnover of underlying futures contracts of the corresponding commodity during the previous twelve months, shall be at least: INR 100 crore for agricultural and agri-processed commodities
The average daily turnover of underlying futures contracts of the corresponding commodity during the previous twelve months, shall be at least: INR 1000 crore for other commodities
The Circular shall be applicable for all Options on Futures contracts (agricultural and agri-processed commodities) introduced on or after June 1, 2024 wherein average daily turnover of underlying futures contracts during the previous twelve months is Rs.100 crore
The Stock Exchanges are advised to take steps to make necessary amendments to relevant bye-laws, rules and regulations for the implementation of this circular and bring the provisions of this circular to the notice of their members and also to disseminate the same on their website
This circular is issued in exercise of the powers conferred under Section 11(1) of the Securities and Exchange Board of India Act 1992, to protect the interest of investors in securities and to promote the development of, and regulate the securities market
Source: SecMarx — Eligibility criteria for launching Options with Commodity Futures as underlying by Stock Exchanges having commodity derivative segments.. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.