SEBI Eases Capacity Norms for Commodity Derivatives Segment

The Securities and Exchange Board of India (SEBI) has relaxed capacity planning requirements for stock exchanges and clearing corporations operating in the commodity derivatives segment. The move aims to better align infrastructure mandates with actual and projected system demand, while continuing to safeguard market stability and investor interests.

Installed Capacity Requirement Reduced

Under the earlier provisions of the SEBI Master Circular, trading systems in the commodity derivatives segment were required to maintain installed capacity at least four times the peak order load. SEBI has now rationalised this threshold.

The revised framework mandates that exchange and clearing corporations maintain installed capacity at a minimum of two times the projected peak load for the segment. This effectively reduces the infrastructure burden on Market Infrastructure Institutions (MIIs), reflecting lower utilisation levels in the segment.

75% Utilisation Trigger Retained as Safeguard

While easing baseline capacity norms, SEBI has retained a strong performance-linked safeguard. If actual utilisation of any critical system component exceeds 75 percent of installed capacity, the concerned MII must immediately initiate corrective measures.

Such measures may include fine-tuning applications, optimising system resources, or augmenting capacity. These actions must be undertaken under the supervision of the MII’s Standing Committee on Technology (SCOT), ensuring accountability and oversight.

Mandatory Policy Integration

SEBI has directed that the 75 percent utilisation trigger be formally incorporated into each MII’s Capacity Planning and Real-Time Performance Monitoring Policy. This ensures a structured, documented, and proactive approach to system monitoring and intervention.

Extended Framework and Implementation Timeline

The regulator has also extended the broader framework on capacity planning and real-time performance monitoring for MIIs to the commodity derivatives segment, with the revised capacity multiplier and utilisation trigger being the key modifications.

Also Read: SME Capital Market Gap: SEBI Targets Compliance and Cost Barriers

Stock exchanges and clearing corporations are required to submit their segment-specific policies to SEBI within three months, after obtaining approvals from SCOT and their respective governing boards. The circular will come into effect on May 11, 2026.

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