Sebi allows Commex to modify futures contract specifications

Regulator Sebi today allowed commodity exchanges to modify futures contract specifications pertaining to quality parameters, a move that will ensure that bourses are enabled to respond to market requirements quickly.
The exchanges are permitted to modify futures contract specifications related to ticker symbol, maximum order size, trading unit, delivery unit, quotation base value, tick size, delivery centres, issue related to premium /discount, quality parameters and its relevant aspects such as quantity variation and tolerance limit.
The facility is subject to the condition that bourses would invariably inform the market participants and the regulator well in advance before introduction of any modification in contract specifications along with reasons for the same.

The norms would come into effect immediately, Securities and Exchange Board of India (Sebi) said in a circular.
Sebi has begun regulating commodity markets since the merger of Forward Markets Commission (FMC) with the regulator in September last year.
This circular is being issued to consolidate and update such norms prescribed for commodity exchanges by the erstwhile FMC.

Besides, Sebi has given permission for continuous trading in futures contracts of several commodities.
The approval for continuous trading has been given for the contract specification and contract launch calendar already permitted by the regulator.
Sebi has asked exchanges not to change the contract specification and the launch calendar of contracts without prior approval of the regulator.

The exchanges are required to inform the regulator if they decide not to launch a fresh contract even after getting the approval for continuous trading.
(REOPENS DEL 19)
The affixture services would have to be completed within the stipulated time, said Sebi which is faced with a daunting task of recovering thousands of crores or rupees from various individuals and companies that have duped investors of their hard-earned money with promise of huge returns.
Sebi has been passing orders actively against these entities, including for attachment of their properties, but the recovery process mostly tends to be long-winding.
The regulator said the affixture of the orders and summons would need to be done in presence of two independent witnesses of same locality and would need to be photographed.

The selected agency would be responsible for identifying the assets attached by Sebi, based on the information provided by the regulator.
If the agency is not able to complete the process of affixture or proclamation for reasons such as incorrect address, objection to affixture by the occupant of the premises, it would have to submit a report to Sebi with detailed reasons for failure, attested by two independent witnesses from the locality.
Listing out eligibility criteria, Sebi said that agency should be registered under Companies Act. It should be an Asset Reconstruction Companies or Non-Banking Finance Company or company engaged in recovery related work in the government and semi-government sector.

Besides, the interested party should be a detective agency or a professional specialist firm having a good track record as a recovery agency empanelled with other banks, postal and courier agencies. Sebi wants the the agency to have prior experience in similar areas for the last three years.
Interested agencies will have to send application to Sebi by November 15.
The agency will be paid the charges as discovered on evaluation of price bids received for each of the services, and as per a specified criteria to ascertain the payment including for the local and outstation work.