Sebi directs commodity exchanges to align trading and delivery lot sizes

The regulator has asked exchanges to put in place an adequate mechanism to ensure that no participation is put to disadvantageous position

Markets regulator Securities and Exchange Board of India (Sebi) has directed commodity exchanges to align trading lot size with delivery lot size to remove barriers in physical delivery of the commodity and adhere to the global standard. Sebi has asked commodity exchanges to align trading lot size with delivery lot size or submit their proposal to the regulator seeking exemptions in one month beginning Wednesday.

The regulator, however, has made exceptions to this provision in case to case basis, subject to the exchange submitting detailed rationale including physical market practices, feedback from stakeholders etc for keeping different lot size for