Securities and Exchange Board of India Panels Submit Agri Derivatives Review Report

Working groups constituted by the Securities and Exchange Board of India (SEBI) to reassess the delivery, settlement and broader regulatory framework in the agricultural commodity derivatives segment have submitted their reports to SEBI Chairman Tuhin Kanta Pandey, the regulator said on Thursday.

In a post on X, SEBI confirmed that the expert panels presented their findings after conducting a detailed review of the existing framework governing delivery and settlement mechanisms, as well as key regulatory provisions in the agri-derivatives space.

Focus on Margins, Position Limits and Market Integrity

The working groups were tasked with evaluating whether current rules related to margins, position limits and settlement processes could be streamlined or optimised without undermining market stability and integrity.

Their mandate included identifying potential reforms that would enhance efficiency while safeguarding against excessive speculation or systemic risks in the agricultural commodities market.

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Review of Non-Agri Segment on the Cards

In December, Chairman Pandey had indicated that SEBI would soon set up another working group to undertake a similar review of the non-agricultural commodity derivatives segment.

Following consultations with stakeholders, he had said the new panel would be notified shortly to examine regulatory norms and operational frameworks in the broader commodities derivatives market.

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