pc
nid 92550
May 15, 2026
pthandapani@vixio.com
India
Securities and Exchange Board of India
financial services
127% of draft length
draft in Generated
Generated
1515 charsIndia's Securities and Exchange Board Launches Consultation on Exchange Traded Derivatives Business Measures
On May 14, 2026, the Securities and Exchange Board of India (SEBI) launched a consultation paper on measures to ease doing business in exchange traded derivatives.
The consultation paper addresses regulatory measures intended to simplify and streamline operations for market participants engaged in exchange traded derivatives trading and related activities. By focusing on ease of doing business, SEBI aims to reduce compliance burdens while maintaining market integrity and investor protection standards. The initiative reflects SEBI's broader commitment to enhancing the competitiveness and efficiency of India's derivatives markets, which are critical components of the broader financial services ecosystem. Exchange traded derivatives play an important role in price discovery, hedging, and risk management for market participants across various sectors of the economy.
The consultation seeks feedback from all stakeholders, including brokers, exchanges, clearing corporations, market participants, and other interested parties. Comments can be submitted through SEBI's official public comments portal. The specific deadline for submission and expected timeline for publishing responses should be confirmed through SEBI's consultation portal.
**Reference:**
Securities and Exchange Board of India. Consultation Paper on Measures for ease of doing business on Exchange Traded Derivatives. May 14, 2026. Available at: https://www.sebi.gov.in/sebiweb/publiccommentv2/PublicCommentAction.do?doPublicComments=yes
Agent draft
Not run yet.
Published
1926 charsSecurities and Exchange Board of India Launches Consultation on Easing Business Measures for Exchange Traded Derivatives
The Securities and Exchange Board of India (SEBI) has released a consultation paper on exchange traded derivatives.
The consultation paper proposes:
Product design and option mechanisms proposing to delete the 'Close to the Money' (CTM) option series and corresponding norms for options in goods to simplify the exercise mechanism and align with international standards, and modifying the Product Advisory Committee (PAC) requirements to allow exemptions from composition rules if specific stakeholders are unavailable.
Meeting frequencies and contract expiry recommending a reduction in the mandatory frequency of PAC meetings for non-agricultural commodities from twice a year to once a year, and granting exchanges the authority (with Managing Director approval) to advance a running contract's expiry date without PAC approval if the physical market unexpectedly closes on the expiry day.
Regulatory restructuring and simplification proposing to merge chapters regarding exchange traded derivatives from the Master Circular for Stock Exchanges and Clearing Corporations (MSECC) and the Master Circular for Commodity Derivatives Segment (MCCD) into a single, unified set of directions, while simultaneously demerging and separating compliance norms specifically applicable to Clearing Corporations from those applicable to exchanges.
Position limits and disclosures suggesting that the responsibility to monitor position limits be clearly delineated through formal agreements if outsourced to Clearing Corporations, discontinuing the requirement for exchanges to provide advance intimation to SEBI when setting lower position limits, and shifting the disclosure of daily derivatives transactions and Product Success Framework (PSF) evaluation reports to the exchanges' websites rather than requiring submission to SEBI or media publications.
Feedback on these proposals may be submitted via this link by June 4, 2026.