CIRCULAR
SEBI/HO/MRD/MRD-PoD-1/P/CIR/2022/128 September 27, 2022
The Managing Directors / Chief Executive Officers
Of All Exchanges having Commodity Derivatives Segment
Sir / Madam,
Subject: Modification in Daily Price Limits (DPL) for Commodity Futures
Contracts
1. SEBI vide Circular No. SEBI/HO/CDMRD/DNPMP/CIR/P/2021/9 dated January
11, 2021 has revised the norms for Daily Price Limit (DPL) for commodity futures
contracts.
2. The exchanges have informed that closing price on domestic exchange differs from
closing price on international exchange/s (after necessary currency conversion),
because of difference in methodology of calculation of closing price. Due to such
difference in closing price, the aggregate DPL range on domestic exchange may
lag behind (either upwards or downwards) the prices on international exchange in
next trading session.
3. To resolve the above, the Clause 7.4 of aforementioned SEBI Circular is
substituted with the following:
“7.4 In case the price movement in the international markets is more than the
aggregate DPL or if international price is beyond aggregate DPL range (after
appropriate currency conversion) when compared with closing price on previous
day on domestic exchange, the same maybe further relaxed in stages of 3% by the
Exchange with cooling off period of 15 minutes. For such instances, the Stock
Exchanges shall give appropriate notice to the market along with all the relevant
details and justification for the same.”
4. Further, to maintain parity between Para 7.4 and Para 7.5 of the instant SEBI
Circular, Para 7.5 is substituted with the following:
“7.5 Only in the event of exceptional circumstances, where there is extreme price
movement, beyond the initial slab of the DPL, in the international markets, during
trading hours or after the closure of trading on domestic exchanges, the stock
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exchanges can relax the DPL directly by the required level, by giving appropriate
notice to the market, as per para 7.4. above.”
5. The stock exchanges shall inform SEBI of all such instances of relaxation of DPL
pursuant to Para 7.4 and Para 7.5 above, under Para 10 of Section I in the Monthly
Development Report being submitted as per SEBI Circular No.
CIR/CDMRD/DEA/4/2015, dated December 09, 2015.
6. It is clarified that breach of slab is not essential for implementation of Clause 7.4
and Clause 7.5 of SEBI Circular SEBI/HO /CDMRD/DNPMP/CIR/P/2021/9 dated
January 11, 2021.
7. The circular shall be effective from the date of issuance of this circular.
8. All other terms and conditions specified in circular no. Circular No. SEBI/HO
/CDMRD/DNPMP/CIR/P/2021/9 dated January 11, 2021 shall remain the same.
9. 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.
10. The Circular is issued with the approval of the competent authority.
11. This circular is available on SEBI website www.sebi.gov.in under the category
“Circulars” and “Info for Commodity Derivatives”
Yours faithfully,
Naveen Sharma
General Manager
Policy and Development 1 (Commodities)
Market Regulation Department
naveens@sebi.gov.in
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