9911796707
TMI BlogPosition Limits for Agricultural Commodity DerivativesX X X X Extracts X X X X X X X X Extracts X X X X ..... ves are inadequate and not in consonance with the deliverable supply of the commodity. This circular is hereby issued in continuation of the abovementioned SEBI circular with an objective to outline a principle based methodology for revising the commodity-wise numerical value of overall client level open position limits for agricultural commodities with reference to the 'deliverable supply' of the such commodity available in the country during any specific year. 3. After due consultation with various stakeholders and on the basis of recommendations of CDAC (Commodity Derivatives Advisory Committee), following framework is hereby being prescribed for determination of numerical value of overall client level open position limits for a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l open position limits for each commodity shall be calculated from 'deliverable supply' available in a particular year, as per its category as given below: Category of Commodity Position limits Broad 1% of the deliverable supply Narrow 0.5% of the deliverable supply Sensitive 0.25% of the deliverable supply 3.3.1. The numbers arrived based upon above formula should be rounded off downward to appropriate number of zeroes. 3.4. Yearly Categorization of commodities and computation of position limits : 3.4.1. All the national commodity derivatives exchanges shall jointly classify agricultural commodities into the afore-stated three categories on annual basis as per the principles indicated at para No. 3.1 above. 3.4.2. Wh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rization of commodities and computation of numerical value of position limits. Numerical values of position limits for any agricultural commodity shall be revised only if the computation results in a revision in the value by at least 5% compared to previous year's limits. Exchanges shall, after prior intimation to SEBI, notify such details to the market through their respective websites sufficiently in advance and latest by 31st of July (unless extended by SEBI under exceptional circumstances) of every year and revised limits shall become applicable for all running contracts with effect from 1st of September of every year. 3.4.5. However for the current year, given the paucity of time, all the national commodity derivatives exchanges ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s have been prescribed vide Para '6' of SEBI Circular dated September 27, 2016. In this regard all national commodity derivatives exchanges are directed to jointly formulate a uniform guidelines and disclose the same to the market within 30 days from the date of this circular. 7. There is no change in norms with regard to near month position limits, computation of open positions, monitoring of position limits or any other norm earlier prescribed by SEBI for position limits. 8. The provisions of this circular shall come into effect from the date of this Circular. 9. The Exchanges are advised to: i. take steps to make necessary amendments to the relevant bye-laws, rules and regulations for the implementation of the same. ii. bring the ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
