Sebi's Strategic Overhaul of Commodity Derivatives Framework

Sebi's working groups have submitted reports recommending optimizations to the delivery and settlement framework in the agricultural commodity derivatives segment. Planned changes aim to enhance efficiency without affecting market integrity. Further reviews are expected for non-agricultural commodities.

Working groups established by the Securities and Exchange Board of India (Sebi) have submitted their recommendations to Chairman Tuhin Kanta Pandey. These panels were tasked with assessing and optimizing the current framework for delivery and settlement in the agricultural commodity derivatives sector, including margins and position limits.

According to a statement released on Thursday, the reports aim to refine the existing systems while preserving market integrity. The expert panels' findings could lead to significant improvements within the sector, addressing longstanding concerns over regulatory norms.

Chairman Pandey has also announced plans for a new working group to similarly review non-agricultural commodity derivatives, following consultations with relevant stakeholders. This initiative underscores Sebi's commitment to modernizing financial frameworks.

(With inputs from agencies.)