SEBI Working Groups Submit Agri Derivatives Review Reports

SEBI Receives Expert Panel Reports on Agricultural Commodity Derivatives Framework​

The Securities and Exchange Board of India on Thursday said that the working groups constituted to review the delivery and settlement framework and regulatory norms in the agricultural commodity derivatives segment have submitted their reports to Chairman Tuhin Kanta Pandey.

The regulator confirmed that the expert panels formally presented their findings to the Chairman as part of a broader review exercise aimed at strengthening the commodity derivatives market architecture.

Review of Margins, Position Limits and Settlement Mechanisms​

The working groups were assigned to assess whether the current framework governing margins, position limits, and delivery and settlement systems could be streamlined or optimized without affecting market integrity.

The review focused specifically on agricultural commodity derivatives, where regulatory design plays a critical role in ensuring orderly trading, effective risk management, and smooth physical settlement processes.

According to SEBI, the panels examined the existing regulatory structure and evaluated potential improvements while safeguarding transparency and systemic stability in the segment.

Similar Review Planned for Non-Agricultural Commodities​

In December, Pandey had indicated that the regulator would soon set up another working group to conduct a comparable review of the non-agricultural commodity derivatives segment.

The proposed exercise would follow consultations with stakeholders and is expected to assess regulatory norms and operational frameworks in that segment, similar to the review undertaken for agricultural commodities.

The submission of the reports marks a key step in SEBI’s ongoing efforts to reassess and refine the regulatory framework governing India’s commodity derivatives markets.