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SEBI Revises Minimum Staggered Delivery Period For Commodity Futures Contracts

The Securities and Exchange Board of India (SEBI) has announced a modification in the minimum duration for the staggered delivery period of commodity futures contracts. This adjustment is part of SEBI’s ongoing efforts to improve the efficiency and reliability of the commodity derivatives market. According to a circular issued by SEBI on May 24, a […]

The Securities and Exchange Board of India (SEBI) has announced a modification in the minimum duration for the staggered delivery period of commodity futures contracts. This adjustment is part of SEBI’s ongoing efforts to improve the efficiency and reliability of the commodity derivatives market.

According to a circular issued by SEBI on May 24, a paragraph in the ‘Master Circular for Commodity Derivatives Segment’ dated August 4, 2023, has been revised. This change is based on feedback from market participants and discussions held by SEBI’s Commodity Derivatives Advisory Committee (CDAC).

The minimum duration for the staggered delivery period of commodity futures contracts is now set to be at least three working days. Previously, this duration was not explicitly specified, leading to inconsistent practices across the segment. This change will take effect from July 1 and will apply to all contracts with staggered delivery scheduled after this date.

SEBI has instructed all recognized stock exchanges and clearing corporations to inform their members of these new provisions and to ensure that the information is prominently displayed on their websites. The circular states, “This circular is issued under the authority of Section 11(1) of the Securities and Exchange Board of India Act, 1992.” This section authorizes SEBI to take measures to protect investor interests, promote development, and regulate the securities market.

The full text of the circular is available on SEBI’s official website under the categories “Circulars” and “Info for Commodity Derivatives.”

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Commodity Derivatives Advisory Committee (CDAC)SEBIstaggered delivery periodTDGThe Daily Guardian