TaxTMI 
TaxTMI 
Review of Position Limits for Clients and Penalty Provisions for Violation / Breach of Position Limits for Commodity Derivatives Segment
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....er Circular for Commodity Derivatives segment dated Aug 04, 2023. The current position limits were introduced in 2017, aligned with market conditions prevailing at that time. SEBI has been receiving representations to review the position limit norms applicable for agri commodity derivatives, as prescribed under Para 3.5.2 of the aforesaid circular. Further, representations have been received for capping of penalty for position limit violation as prescribed under Para 3.4.3. 2. Accordingly, based on representations received from stakeholders, recommendations by the Working Group (WG) on 'Review of current regulatory norms applicable to Agri Commodity Derivatives Segment' and CDAC and public comments received, and with the objectiv....
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....imit(s) by the next trading day after the day of violation. In case such violation continues, the Exchange would square-off the excess position without any further notice to the member by putting the orders on behalf of the member in that client code and will not be responsible for the consequences of such square-off. (2) In case, the instance at 1(a) above is observed for more than 3 times for a trading member in a calendar month, the Exchange would put the concerned member on square off mode for a period of one day, if the violation is on account of the same commodity. (3) In case, the instances above including 1(a) and 1(b), are observed for more than 3 times for a trading member in a calendar month, a penalty equivalen....
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....on limits Broad 2% of the deliverable supply Narrow 1% of the deliverable supply Sensitive 0.5% of the deliverable supply The numbers arrived based upon above formula should be rounded off downward to appropriate number of zeroes. The commodities which may shift from narrow category to broad category post change in definition of broad category, shall initially retain position limit of 1% for one year. Thereafter, pursuant to a review by the exchange and upon satisfaction, the exchange may increase the position limit of such commodities to 2% as per the applicable position limits for the broad category. 3. The circular shall come into force with immediate effect. 4. The Exchanges are advised to: 4.1. ta....