Clarification with respect to applicability of the benefit of early pay-in in Commodity Derivatives Segment
Summary
This circular revises paragraph 11.3.1 of the SEBI Master Circular for the Commodity Derivatives Segment to clarify early pay-in norms. It mandates Clearing Corporations to provide an early pay-in facility allowing market participants to deposit certified goods against derivatives contracts. While margins may be exempted based on risk perception, Clearing Corporations must continue to collect mark-to-market margins for such positions.
Text
paragraph 11.3.1 of the aforementioned Master Circular stands revised as under:
Clearing Corporations shall provide early pay-in facility to market participants permitting them to deposit certified goods to the Clearing Corporation accredited warehouse against relevant derivatives contracts.
For such positions against which early pay-in has been made, based on risk perception, Clearing Corporations may exempt imposition of all types of margins.
However, Clearing Corporations shall continue to collect mark to market margins from such market participants against such positions.
This circular shall come into effect from September 21, 2026.
The Stock Exchanges and Clearing Corporations are advised to make necessary changes to their systems for implementation of the above 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, read with Regulation 51 of the Securities Contracts (Regulation) (Stock Exchange and Clearing Corporations) Regulations, 2018 to protect the interests of investors in securities and to promote the development of, and to regulate the securities market.
Source: SecMarx — Clarification with respect to applicability of the benefit of early pay-in in Commodity Derivatives Segment. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.