SEBI to update trader limits in nonagricultural commodity contracts
SEBI is looking to update the rules on how much traders can hold in nonagricultural commodity contracts, aiming to make markets more active without losing sight of risk.
Chairman Tuhin Kanta Pandey shared that this review is all about boosting liquidity and depth, while keeping risk controls strong.
SEBI plans phased rollout, project Jagrook
The plan is to roll out changes in phases, letting contracts grow before requiring physical settlement.
SEBI has completed consultations on the matter and guidelines will follow.
They're also addressing GST-related issues in the commodity space, and through Project Jagrook, want to help farmers, MSMEs, and hedgers better understand derivatives so more people can participate safely.
Pandey emphasized that while making things easier, SEBI won't compromise on trust or compliance: "Trust and market integrity" must not be compromised, he added.