SEBI revamps commodity derivatives penalties and agricultural classifications immediately
SEBI just rolled out new rules for the commodity derivatives market, making penalties clearer and stricter for trading members for client-level open interest violations.
These changes kick in right away and also update how agricultural commodities are classified: all to facilitate ease of doing business and improve market risk management across exchanges.
SEBI sets fines ₹2L, ₹10,000
Now, if someone goes over their allowed trading limit by more than 2%, the fine is capped at ₹200,000; smaller slip-ups can cost up to ₹10,000.
The trading member has until the next trading day after the day of violation to fix any extra positions or exchanges will step in and close them out.
SEBI says these updates come after listening to feedback from industry folks and should help facilitate ease of doing business.