SEBI plans overhaul of exchange traded and commodity derivatives rules
Business
SEBI is planning a big cleanup of its rules for exchange-traded and commodity derivatives, aiming to cut out outdated requirements and make things easier for exchanges and clearing corporations.
The regulator says these changes are about reducing unnecessary paperwork and confusion, and it is open to public feedback until June 4.
SEBI proposes separate rulebooks, online disclosures
Some standout proposals include merging overlapping guidelines, scrapping the tricky "Close to the Money" (CTM) mechanism for commodity options that traders found confusing, and cutting down committee meetings for nonagricultural commodities.
SEBI also wants disclosures moved online instead of in newspapers, lets exchanges delegate position limit checks, and plans separate rulebooks so everyone knows their role.