SEBI issues new commodity derivatives trading limits to simplify rules
SEBI just rolled out new rules for how much you can trade in the commodity derivatives market.
The changes, announced Wednesday, are meant to make things simpler and clearer for clients in the commodity derivatives segment.
These updates come after public feedback and advice from SEBI's Working Group on reviewing regulatory norms for agricultural commodity derivatives and the Commodity Derivatives Advisory Committee (CDAC).
SEBI sets penalties and commodity groupings
If you go over your trading limits by more than 2%, expect a penalty of the lower of the calculated amount or ₹2 lakh.
Smaller slip-ups (up to 2%) will cost up to ₹10,000.
Keep breaking the rules, and you could face square-off mode for one day or forced position cuts.
SEBI also tweaked how commodities are grouped (like adding more agri-products as "broad commodities") with different limits set for each group.
All penalty money goes into an Investor Protection Fund.