Sebi panel weighs relaxations in commodity derivatives framework

Looks at how market-wide position limits are calculated for commodity derivatives contracts

An expert panel set up by the markets regulator, Securities and Exchange Board of India (Sebi), is mulling relaxations in the commodity derivatives trading framework to boost liquidity and increase investor participation. The Commodity Derivatives Advisory Committee (CDAC) met this week and discussed key initiatives for the regulator to consider, said people in the know.

These include a relook at how market-wide position limits (MWPLs) are calculated for various commodity derivatives contracts, permitting the launch of multiple variants of the same commodity, making compulsory delivery optional, and introducing new contracts based on steel and aluminium, according to the sources.

“It