Sebi asks commexes to register traders for price dissemination service

The service will provide information to subscribers instantly in an efficient and transparent manner

To enhance commodity exchanges’ direct communications with traders, the Securities and Exchange Board of India (Sebi) has asked commexes to make efforts for subscribers’ registration for price dissemination services and disseminate derivatives prices to them on a daily basis, free of cost.

“Such direct price dissemination service would provide information to subscribers instantly in an efficient and transparent manner and, thus, shall be of great benefit to market participants,” said a Sebi circular.

The exchange may provide price dissemination through SMS or any other electronic communication facility such as instant messengers, emails, etc, for all commodities, Sebi clarified. The costs incurred on such price dissemination service, however, may be reimbursed from the interest accrued on the investor protection fund.

This directive of Sebi, effective September 29, 2016, supersedes directions issued by the erstwhile regulator of comexes, the Forward Markets Commission (FMC), in this regard.

After merger of FMC with Sebi on September 28, 2015, all directives issued under the Forward Contract Regulation Act were continued to remain in force for one year - till September 28, 2016.

Sebi also continued with trading time on commexes as decided by FMC and empowered commodity exchanges to decide unanimously on exchange holidays.