SEBI modifies staggered delivery period in commodity futures contracts

MUMBAI: The Securities and Exchange Board of India (SEBI) has announced a modification in the minimum duration of the staggered delivery period for commodity futures contracts. This change comes as part of SEBI's ongoing efforts to enhance the efficiency and reliability of the commodity derivatives segment.

According to a circular issued by the market regulator on May 24, SEBI has revised a paragraph of its 'Master Circular for Commodity Derivatives Segment' dated August 04, 2023. This revision is based on feedback from market participants and discussions held by the Commodity Derivatives Advisory Committee (CDAC) of SEBI.

The minimum duration of the staggered delivery period for commodity futures contracts is now set to be at least three working days. Previously, this duration was not explicitly specified, leading to varied practices across the segment.

This change will be effective from July 1, and will apply to all contracts where the staggered delivery is scheduled after this date. SEBI has directed all recognized stock exchanges and clearing corporations to inform their members of these new provisions and to ensure the information is prominently displayed on their websites.

This circular is issued under the authority of Section 11(1) of the Securities and Exchange Board of India Act, 1992. This section empowers SEBI to take measures to protect investor interests, promote the development, and regulate the securities market.

The full text of the circular is available on SEBI's official website under the categories "Circulars" and "Info for Commodity Derivatives".