CIRCULAR
HO/47/16/13(4)2026-MRD-POD1/I/14266/2026 June 19, 2026
To
The Managing Directors / Chief Executive Officers
All Recognized Stock Exchanges/Clearing Corporations having Commodity Derivatives
Segment
Madam/Sir,
Subject: Clarification with respect to applicability of the benefit of early pay-in in
Commodity Derivatives Segment
1. Para 11.3 of Chapter 11 of SEBI Master Circular SEBI/HO/MRD/MRD-PoD-1/P/CIR/2023/136
for Commodity Derivatives Segment dated Aug 04, 2023 prescribes norms for Early Pay-in
Facility in respect of commodity derivatives.
2. Based on representations received from stakeholders and deliberations by the Working Group
(WG) on “Review of current regulatory framework of delivery and settlement applicable to
Agricultural Commodity Derivatives Segment and the Commodity Derivatives Advisory
Committee (CDAC), paragraph 11.3.1 of the aforementioned Master Circular stands revised
as under:
“11.3.1. Clearing Corporations shall provide early pay-in facility to market participants permitting
them to deposit certified goods to the Clearing Corporation accredited warehouse
against relevant derivatives contracts. For such positions against which early pay-in
has been made, based on risk perception, Clearing Corporations may exempt
imposition of all types of margins. However, Clearing Corporations shall continue to
collect mark to market margins from such market participants against such positions.”
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3. This circular shall come into effect from September 21, 2026.
4. The Stock Exchanges and Clearing Corporations are advised to make necessary changes to
their systems for implementation of the above 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, read with Regulation 51 of the Securities
Contracts (Regulation) (Stock Exchange and Clearing Corporations) Regulations, 2018 to
protect the interests of investors in securities and to promote the development of, and to
regulate the securities market.
6. The Circular is issued with the approval of the competent authority.
7. This Circular is available on SEBI website www.sebi.gov.in under the category
“Legal>Circulars” and “Info for Commodity Derivatives”.
Yours faithfully,
Neetika Rajpal
Deputy General Manager
Market Regulation Department
Email: neetikar@sebi.gov.in
Phone Number: +91-22-26449628
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