The Securities and Exchange Board of India has revised its commodity derivatives framework to clarify how the early pay-in facility applies when market participants deposit certified goods with a Clearing Corporation accredited warehouse against relevant derivatives contracts. For positions where early pay-in has been made, clearing corporations may, based on their risk perception, exempt all types of margins, but they must continue to collect mark to market margins. The change revises paragraph 11.3.1 of SEBI’s master circular for the commodity derivatives segment. It follows stakeholder representations and deliberations by the working group reviewing the delivery and settlement framework for the agricultural commodity derivatives segment and the Commodity Derivatives Advisory Committee. The revised requirement takes effect on Sept. 21, 2026. Recognized stock exchanges and clearing corporations with a commodity derivatives segment have been instructed to update their systems, notify their members and publish the changes on their websites.
Securities & Exchange Board of India2026-06-19
Securities and Exchange Board of India clarifies early pay in treatment in commodity derivatives with margin relief excluding mark to market
The Securities and Exchange Board of India has clarified that, in commodity derivatives, positions backed by early pay-in of certified goods may receive exemption from all margins other than mark to market margins. The revision applies to the commodity derivatives master circular and takes effect on Sept. 21, 2026. Stock exchanges and clearing corporations must update their systems and inform members.