Sebi rejigs commodity derivatives advisory committee

Markets regulator Sebi has re-constituted its commodity derivatives advisory committee that examines issues related to contract designs and new products in the segment and advises on matters related to delivery mechanism and warehouses. The 17-member committee would be chaired by retired IAS officer Ashok Dalwani, according to the latest update with the Securities and Exchange Board of India (Sebi).

The other members of the panel include BSE MD and CEO Ashish Chauhan, and NSE MD and CEO Vikram Limaye. In addition, chiefs of MCX, ICEX and NCDEX are also members of the committee. The panel also has representatives from Sebi, Niti Aayog, Reserve Bank of India, finance ministry, National Bank for Agriculture and Rural Development (NABARD), Commodity Participants Association of India (CPAI), Warehousing Development and Regulatory Authority (WDRA) and MMTC.

Besides, representatives of commission for agricultural costs and prices, department of agriculture, cooperation and family welfare, department of consumer affairs, department of food and public distribution and department of commerce are members of the committee. The committee has been mandated to recommend measures for improving market safety, efficiency, transparency and integrity and reducing cost of transaction.

In addition, the panel will examine issues related to contract designs and new products in commodity derivatives and to advise on matters related to delivery mechanism and warehouses. Among others, it will recommend changes if required in the risk management system and suggest changes if required in the regulatory framework of commodity derivatives including governance of commodities derivatives exchanges.

The terms of reference of the committee also include review investor protection measures in the exchanges and suggest improvements as well as examine aspects related to various intermediaries and their regulations. Further, the panel will also suggest measures for changes and improvements in market structure in view of the impending changes.

Also, it will take note of any new development that may have taken place in the market between two consecutive meetings of the committee and suggest measures..

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