CIRCULAR
SEBI/HO/MRD/MRD-PoD-1/P/CIR/2024/61 May 27, 2024
To,
The Managing Directors/Chief Executive Officers
All Stock Exchanges with Commodity Derivatives Segment
Dear Sir/Madam,
Sub: Eligibility criteria for launching Options with Commodity Futures as
underlying by Stock Exchanges having commodity derivative segments.
1. Chapter 6 of SEBI Master Circular dated August 4, 2023 for Commodity Derivatives
Segment prescribes Product Design and Risk Management Framework for Options
on Commodity Futures.
2. Based on representations received from market participants and deliberations by
Commodity Derivatives Advisory Committee (CDAC) of SEBI, it is decided that for
launching Options contracts on agricultural and agri-processed commodities, the
average daily turnover of underlying futures contracts of the corresponding
commodity during the previous twelve months shall be INR 100 crore instead of
existing INR 200 crore. Accordingly, paragraph 6.1.2. of the aforesaid Master
Circular on Eligibility criteria for launching Options on Commodity Futures stands
revised as follows:
6.1.2. Eligibility criteria for launching Options with Commodity Futures as
underlying: Options would be permitted for trading on a stock exchange only on
those commodity futures as underlying, which are traded on its platform and satisfy
the criteria specified below on the respective exchange:
i. The average daily turnover of underlying futures contracts of the corresponding
commodity during the previous twelve months, shall be at least:
a) INR 100 crore for agricultural and agri-processed commodities
b) INR 1000 crore for other commodities
3. The Circular shall be applicable for all Options on Futures contracts (agricultural
and agri-processed commodities) introduced on or after June 1, 2024 wherein
average daily turnover of underlying futures contracts during the previous twelve
months is Rs.100 crore.
4. The Stock Exchanges are advised to take steps to make necessary amendments
to relevant bye-laws, rules and regulations for the implementation of this circular
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and bring the provisions of this circular to the notice of their members and also to
disseminate the same on their website.
5. 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 interest of
investors in securities and to promote the development of, and regulate the
securities market.
6. This circular is available on SEBI website at www.sebi.gov.in under the category
“Circulars” and “Info for – Commodity Derivatives.”
7. The Circular is issued with the approval of competent authority.
Yours faithfully,
Naveen Sharma
General Manager
Market Regulation Department
Email: naveens@sebi.gov.in
Phone No.: 022-26449709
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