Revision of eligibility criteria for launching commodity futures contracts.

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....Trading in Futures Contracts, respectively. 2. Some of these norms as mentioned at paragraph 1 above were prescribed by erstwhile Forward Market Commission (FMC) and were continued after the merger of FMC with SEBI. The commodity derivatives markets have evolved since then, with the introduction of new products, participants, entry of new stock exchanges and thus, a need is felt to review the norms in the aforesaid provisions. 3. Based on representations received from market participants and deliberations by Commodity Derivatives Advisory Committee (CDAC) of SEBI, it has been decided to modify the norms under Paragraph 2.2 and Paragraph 10.1 of the Master Circular dated August 4, 2023 as under: A. Paragraph 2.2. heading may b....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ster Circular dated August 4, 2023 regarding Checklist of information/details for launch of new contract. The parameters / items listed in the check-list for compliance are illustrative and not exhaustive. Any additional relevant parameter/information as deemed necessary may also be furnished while sending proposal for contracts. G. Paragraph 10.1.2. is modified as under. 10.1.2. "Approval for futures contracts: Approval for futures trading in the commodities approved by SEBI is subject to the following terms and conditions: i. Approval for trading in futures contracts is subject to Rules, Byelaws and Regulations of the concerned Stock Exchange. ii. Stock exchange shall launch future contracts with contra....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....like Food Safety Standard Authority of India, Agmark, BIS etc. vii. The stock exchange shall ensure that the prescribed position limits on open position of each member and non-member client and the limits on daily price fluctuation as specified in the contract specification are adhered to. viii. The permission granted for the contracts is subject to daily Mark to Market settlement of outstanding contracts as per the procedure and delivery mechanism/process specified in the Bye-laws, the Rules and the Regulations of the stock exchange. ix. The stock exchange shall ensure that there is no unhealthy speculative trading in the market, which may result in cornering or artificial rigging up or down of the prices by a pa....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... Commercialization rate (annual exports/annual supply)   g. Crop cycle   h. Warehouse facilities in the cultivation area   i. Preferred trade quantity in physical market   j. Shelf‐life of the commodity   k. Global level production / consumption figures, major exporting & importing countries with figures   l. Monthly price movement in futures market -both domestic and international for last 3 years   m. Prevailing spot prices in the domestic physical market in the last three years and immediate 3 preceding months prior to the application   n. Which are the other exchanges where the proposed contract is already being trade....