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Introducing the “In Favour Of” filter in Case Laws.
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<h1>SEBI Permits Commodity Index Options on Exchanges with Strict Design and Risk Management Requirements.</h1> The circular issued by the Securities and Exchange Board of India (SEBI) allows recognized stock exchanges with a commodity derivatives segment to introduce options on commodity indices. Exchanges must adhere to a specified product design and risk management framework, and obtain prior SEBI approval. They are required to submit three years of index data, including volatility and returns, and disclose participant open interest. Exchanges must also ensure adequate monitoring and surveillance, amend relevant regulations, and update brokers and members. The circular outlines contract specifications, trading hours, expiration, position limits, and risk management measures, effective from the date of issuance.