Circular on Cross Margin in Commodity Index Futures and its underlying constituent futures or its variants (Circular dated – 29.06.2021) – SEBI
View PdfCircular on Cross Margin in Commodity Index Futures and its underlying constituent futures or its variants (Circular dated – 29.06.2021) – SEBI
- SEBI has prescribed norms, inter-alia, for providing margin benefit on spread positions in commodity futures contracts, vide various circulars. In order to improve the efficiency of the use of the margin capital by market participants, it has been decided to introduce cross margin benefit between Commodity Index futures and futures of its underlying constituents or its variants. This shall reduce the cost of trading and may lead to enhanced liquidity in both the Commodity index futures and its underlying constituent futures or its variants.
- Therefore, based on the consultation with the stakeholders, the following provisions shall be applicable in this regard;
- Computation of cross margin benefit:
- Separate Accounts
- Eligibility
- Default
- Agreement
- This circular is issued in exercise of the powers conferred under Section 11(1) of the Securities and Exchange Board of India Act 1992, to protect the interests of investors in securities and to promote the development of, and to regulate the securities market.
