**Summary:**
This circular, reference number SEBI/HO/MRD/DOP/CIR/2024/57, issued by the Securities and Exchange Board of India (SEBI) on May 24, 2024, addresses a modification to the staggered delivery period in commodity futures contracts. The circular revises paragraph 11.1.3 of the Master Circular for Commodity Derivatives Segment dated August 04, 2023. The key change stipulates that the minimum duration of the staggered delivery period shall be at least three working days. This revision is based on feedback from market participants and deliberations by SEBI's Commodity Derivatives Advisory Committee (CDAC). The circular takes effect on July 01, 2024, and applies to contracts where staggered delivery is scheduled after this date. Stock Exchanges and Clearing Corporations are directed to inform their members of these provisions and disseminate the information on their websites. This circular is issued under Section 11(1) of the Securities and Exchange Board of India Act, 1992. For further information, Naveen Sharma, General Manager, Market Regulation Department, can be contacted at naveens@sebi.gov.in or phone number 022-26449709. The circular is available on the SEBI website (www.sebi.gov.in) under the "Circulars" and "Info for Commodity Derivatives" sections.
Key Entities Referenced
Securities and Exchange Board of India (SEBI): A regulatory body for the securities market in India, responsible for protecting investors and promoting market development.
Commodity Derivatives Segment: A specific market segment dealing with financial instruments based on commodities.
Master Circular for Commodity Derivatives Segment: A comprehensive document issued by SEBI, dated August 04, 2023, outlining regulations and requirements for stock exchanges and clearing corporations involved in commodity derivatives.
Commodity Derivatives Advisory Committee (CDAC): A committee within SEBI that advises on matters related to commodity derivatives.
Stock Exchanges: Recognized entities that facilitate the trading of securities and commodity derivatives.
Clearing Corporations: Organizations that provide clearing and settlement services for transactions on stock exchanges.
Securities and Exchange Board of India Act, 1992: The legislation that established SEBI and defines its powers and functions.
Market Regulation Department: The department within SEBI responsible for overseeing and regulating the securities market.
CIRCULAR
SEBI/HO/MRD/MRD-PoD-1/P/CIR/2024/57 May 24, 2024
The Managing Directors / Chief Executive Officers
All Recognised Stock Exchanges and Clearing Corporations having Commodity
Derivatives Segment
Dear Sir / Madam,
Subject: Modification in Staggered Delivery Period in Commodity Futures
Contracts
1. SEBI vide ‘Master Circular for Commodity Derivatives Segment’ dated August 04,
2023 has issued various requirements for stock exchanges and clearing
corporations for compliance in commodity derivatives segment. Chapter 11 of
aforementioned Master Circular deals with Delivery and Settlement.
2. Based on representations received from market participants and deliberations by
Commodity Derivatives Advisory Committee (CDAC) of SEBI, paragraph 11.1.3 of
the aforementioned Master Circular on Minimum duration of staggered delivery
stands revised as follows and other conditions remain the same:
“11.1.3. The minimum duration of staggered delivery period shall be at least three
working days.”
3. The circular shall be effective from July 01, 2024 i.e., for contracts where staggered
delivery is scheduled after this date.
4. The Stock Exchanges and Clearing Corporations are advised to bring the
provisions of this circular to the notice of their members and also to disseminate
the same on their website.
5. This Circular is issued in exercise of the powers conferred under Section 11 (1) of
the Securities and Exchange Board of India Act, 1992, to protect the interests of
investors in securities and to promote the development of, and to regulate the
securities market.
6. The Circular is issued with the approval of the competent authority.
Page 1 of 27. This circular is available on SEBI website www.sebi.gov.in under the category
“Circulars” and “Info for Commodity Derivatives”
Yours faithfully,
Naveen Sharma
General Manager
Market Regulation Department
naveens@sebi.gov.in
Phone No.: 022-26449709
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