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<h1>SEBI Clarifies Trading Preferences for Commodity Derivatives; Excludes Some Members from New Format, Requires Record-Keeping.</h1> The Securities and Exchange Board of India (SEBI) issued a circular clarifying the applicability of trading preferences for clients involved in commodity derivatives. The revised trading preference format from June 21, 2023, will not apply to members exclusively registered with commodity derivatives exchanges due to low overlap in traded commodities. Instead, these members will use the format prescribed by the former Forward Markets Commission. Stock brokers must provide an opting-out facility for clients and maintain records of negative consent for five years. Exchanges must update their regulations, monitor compliance, and report implementation status to SEBI.