Sebi issues final guidelines for commodity derivatives brokers

A day after taking charge of commodity market regulations, Sebi today issued final norms for traders of commodity derivatives exchanges that need to be complied with.
The existing members of commodity derivatives exchanges will be required to make an application for registration with Sebi within three months from September 28, 2015, the date when merger of Forward Markets Commission (FMC) with Sebi took effect.
They will be allowed to continue their activity unless their application is rejected by Sebi.
Such existing members of commodity derivatives exchanges will be required to comply with the Securities Contract (Regulation) Rules, 1957, within a period of one year from the date of transfer and vesting of rights and assets of FMC with Sebi -- by September 28, 2016.

For new members, the new regulations will apply from the beginning.
In the case of net worth, Sebi said the timeline would be May 5, 2017, and for national commodity derivatives exchanges, it will be within 3 years from the date of merger for regional ones.
Sebi said "business in goods related to the underlying and/or business in connection with or incidental to or consequential on trades in commodity derivatives" by a member of a commodity derivatives exchange would not be disqualified under the Securities Contract (Regulation) Rules, 1957.
The new regulations provide for compliance of the Securities Contracts Regulation (Stock Exchanges and Clearing Corporations) Regulations, 2012, which are currently required to be complied with by stock exchanges.