Sebi today modified the methodology for daily stress testing for commodity derivatives as part of strengthening the risk management system.
Premier stock exchange BSE has entered into an agreement with the Bombay Metal Exchange (BME) for the growth and systematic development of commodity derivatives markets in the non-ferrous metals complex.
Sebi proposes to allow hedge funds to participate in commodity derivatives but says they should not invest more than 10% of the investable funds in one underlying commodity.
Members of clearing corporations in commodity derivatives segment need to have a minimum liquid networth of Rs 50 lakh, Sebi said.
BSE will conduct mock trading for commodity derivatives segment from Monday as it prepares itself for the launch of trade in such products.
NSE has said it will finalise its list of commodity derivatives products to launch on its platform in next 1-2 months.
"The first preference of settlement type shall always be by the way of physical delivery," Sebi said.
Scores of entities have come under the scanner of Sebi for alleged abnormalities in commodity derivatives trading activities, according to sources.
India’s capital markets regulator is likely to allow mutual funds to trade in commodity derivatives and a decision is expected within six months, a senior official said.
Regulator Sebi allowed hedge funds to invest in commodity derivatives, in a move to deepen the market and boost liquidity.