Review of delivery default norms

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ide Circular SEBI/HO/CDMRD/DRMP/CIR/P/2016/90 dated September 21, 2016 had prescribed, inter-alia, provisions for the levy of penalty in the event of delivery default. 2. SEBI had received representations from market participants in the commodity derivatives segment for standardization of delivery default norms, strengthening the deterrent mechanism and ensuring adequate compensation to the non....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....RD/DRMP/CIR /P/2016/90 dated September 21, 2016, shall stand modified as follows: 4.1 Penalty on seller in case of delivery default (default in delivery against open position at expiry in case of compulsory delivery contracts, default in delivery after giving intention for delivery) shall be as follows: 4.1.1 Futures contracts on agri-commodities: 4% of Settlement Price + replace....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....of penalty - 4.1.4.1 At least 1.75% of Settlement Price shall be deposited in the Settlement Guarantee Fund (SGF) of the Clearing Corporation 4.1.4.2 Up to 0.25% of Settlement Price may be retained by the Clearing Corporation towards administration expenses 4.1.4.3 (1% of Settlement Price in case of non-agri goods or 2% of settlement price in case of agri goods) plus rep....