MANU/SDER/0011/2019

Ministry : Securities and Exchange Board of India

Department/Board : Commodity Derivatives Market Regulation Department

Circular No. : SEBI/HO/CDMRD/DOP/CIR/P/2019/135

Date : 14.11.2019

Notification/ Circulars Referred : No. SEBI/HO/CDMRD/CIR/2016/88 dated September 20, 2016 MANU/SDER/0020/2016;No. SEBI/HO/CDMRD/DRMP/CIR/P/2016/90 dated September 21, 2016 MANU/SMIS/0007/2016

Citing Reference:
No. SEBI/HO/CDMRD/CIR/2016/88 dated September 20, 2016 MANU/SDER/0020/2016  Referred

No. SEBI/HO/CDMRD/DRMP/CIR/P/2016/90 dated September 21, 2016 MANU/SMIS/0007/2016  Referred

To,

The Managing Directors/Chief Executive Officers
All Recognized Stock Exchanges having Commodity Derivatives Segment

Sir/Madam,

Modifications in the contract specifications of commodity derivatives contracts

1. SEBI vide its circular ref. no. SEBI/HO/CDMRD/CIR/2016/88 dated September 20, 2016 had inter-alia prescribed at Para 3(c) provisions regarding permission to allow modifications in contract specifications at the exchange level.

2. In order to streamline the process and after consultation with the exchanges, it has been decided to categorise the modifications in contract specification parameters in the following three categories:

a. Category A: Non-material modifications which can be made at the exchange level in yet to be launched and running contracts.

b. Category B: Material modifications which can be made at the exchange level in yet to be launched contracts or running contracts which have nil open interest. These modifications shall require approval from Product Advisory Committee and approval of Regulatory Oversight Committee to be obtained post facto.

c. Category C: Material modifications which can be made on........