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<h1>SEBI Revises Stress Testing Norms for Commodity Derivatives; Introduces Z-Score of 10 for Extreme Price Movements.</h1> The Securities and Exchange Board of India (SEBI) issued a circular revising stress testing norms for the commodity derivatives segment. Following an unprecedented negative settlement in crude oil futures, SEBI introduced an Alternate Risk Management Framework for near-zero or negative prices. After reviewing feedback, SEBI decided to replace extreme historical price movements with a Z-score of 10 in stress testing scenarios. This adjustment aims to address concerns over volatile price events. The circular is effective immediately and is issued under the authority of the SEBI Act, 1992, to protect investor interests and regulate the securities market.