SEBI Working Groups Release Reports on Agri Commodity Derivatives for Chairman's Review

Sebi to Review Agricultural and Non-Agricultural Commodity Derivatives Segment

Key Highlights

• The Securities and Exchange Board of India (Sebi) has received reports from working groups reviewing the delivery and settlement framework and regulatory norms in the agricultural commodity derivatives segment.
• The working groups were tasked with assessing whether the existing framework regulating margins, position limits, and delivery and settlement mechanisms could be improved without undermining market integrity.

Regulatory Review and Recommendations

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Sebi has submitted the reports to Chairman Tuhin Kanta Pandey, who has noted that the recommendations will assist in taking necessary developmental measures after due consultation with all stakeholders. The regulator has established working groups to review the agricultural commodity derivatives segment and will soon form another working group to review the non-agricultural commodity derivatives segment.

Market Expansion and Regulatory Supervision

India's commodity derivatives market has experienced rapid expansion, with 104 notified commodities and variants and 34 unique commodities actively available for trading. Sebi has been supervising commodity markets since 2015 and is working with stakeholders to enhance institutional participation and address GST-related issues.

Regulatory Initiatives

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Sebi has engaged in discussions with the Reserve Bank of India and the Insurance Regulatory and Development Authority of India to facilitate the participation of banks and insurance companies in commodity derivatives. The regulator is also working with the central government to resolve GST-related issues and strengthen the connection between derivatives markets and physical trade.

Key Statistics

• 104: Notified commodities and variants
• 34: Unique commodities actively available for trading
• 2015: Year Sebi began supervising commodity markets