Sebi Modifies Staggered Delivery Period In Commodity Futures Contracts
The minimum duration of the staggered delivery period for commodity futures contracts is now set to be at least three working days
The Securities and Exchange Board of India (Sebi) introduced 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 24 May, Sebi revised a paragraph of its 'Master Circular for Commodity Derivatives Segment' dated 04 August 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 01 July, and will apply to all contracts where the staggered delivery is scheduled after this date.
Sebi directed all recognised stock exchanges and clearing corporations to inform their members of these new provisions and to ensure the information is prominently displayed on their websites. (ANI)
