Left Menu
Development News Edition

Commodity derivatives: Sebi adds diamond, base metals and alloys to liquid assets list

PTI | New Delhi | Updated: 13-09-2019 16:47 IST | Created: 13-09-2019 16:46 IST
Commodity derivatives: Sebi adds diamond, base metals and alloys to liquid assets list
Image Credit: ANI

Capital markets regulator Sebi on Friday added diamond, base metals and alloys to the list of eligible liquid assets for the commodity derivatives segment. Currently, the list of commodities permitted as liquid assets consists of bullion, steel and agricultural commodities.

"Considering the introduction of compulsory delivery-based diamond and base metal derivatives contracts and feedback received from the stakeholders, it has been decided to include diamond, base metals and alloys in the list of permissible liquid assets," the regulator said in a circular. This is subject to minimum applicable haircut and concentration limits, which clearing corporations may accept from their members.

The minimum applicable haircut is 40 per cent for diamond and 30 per cent for base metals and alloys, Sebi said. Besides, it also mentioned that the minimum haircut stipulated for steel stands revised to 30 per cent from the current applicable level of 60 per cent since steel is an alloy.

The regulator further said "all commodities to be accepted as collateral should be of same quality specification which is deliverable under the contract specification of commodity derivatives being traded on the exchange".


TRENDING

OPINION / BLOG / INTERVIEW

Post-COVID-19 Nigeria needs a robust Health Management Information System to handle high disease burden

Nigeria is among a few countries that conceptualised a health management information system HMIS in the early 90s but implementation has been a challenge till date. Besides COVID-19, the country has a huge burden of communicable and non-com...

Morocco COVID-19 response: A fragile health system and the deteriorating situation

Learning from its European neighbors, Morocco imposed drastic measures from the initial stages of the COVID-19 outbreak to try to contain its spread. The strategy worked for a few months but the cases have surged after mid-June. In this sit...

COVID-19: Argentina’s health system inefficiencies exaggerate flaws of health information system

You can recover from a drop in the GDP, but you cant recover from death, was the straightforward mindset of Argentinas President Alberto Fernndez and defined the countrys response to COVID-19. The South American nation imposed a strict...

Videos

Latest News

Delhi's air quality 'moderate'

The late withdrawal of monsoon from Delhi is likely to influence air quality negatively by the weekend, a government forecasting agency has said. The city recorded an air quality index AQI of 116 on Sunday morning, which falls in the modera...

Ladakh reports 68 new COVID-19 cases, one more death

The Union Territory of Ladakh reported 68 new coronavirus cases and one more death, taking the virus tally to 4093 and death toll to 57, an official bulletin said on SundayWith 47 more patients cured of the disease, the number of active cas...

Senior Kerala Congress leader C F Thomas no more

Senior Kerala Congress leader and Changanassery MLA C F Thomas died at a private hospital in Thiruvalla in the district on Sunday, party sources said here. He was 81.He had been undergoing treatment for some ailments, they said. Thomas, who...

Rugby-Rennie sympathetic over All Blacks Christmas lockdown concerns

Australia coach Dave Rennie has expressed some sympathy for the All Blacks over the disputed Rugby Championship schedule and hopes a relaxation of biosecurity rules in New Zealand might mean they are not in isolation over Christmas. New Zea...

Give Feedback