MANU/SMIS/0007/2016

Ministry : Securities and Exchange Board of India

Department/Board : Commodity Derivatives Market Regulation Department

Circular No. : SEBI/HO/CDMRD/DRMP/CIR/P/2016/90

Date : 21.09.2016

To,

The Managing Directors/Chief Executive Officers,
National Commodity Derivatives Exchanges

Sir/Madam,

Staggered delivery, early delivery system, early pay-in facility, penalty on delivery default, fixation of FSP and changes in expiry dates.

1. As per Section 131[B]of the Finance Act, 2015 all rules, directions, guidelines, instructions, circulars, or any like instruments, made by the erstwhile Forward Markets Commission (FMC) or the Central Government applicable to recognised associations under the Forward Contracts Regulation Act, 1952 (FCRA) would continue to remain in force for a period of one year from the date on which FCRA was repealed (September 29, 2015), or till such time as notified by SEBI, whichever is earlier.

2. Erstwhile FMC, from time to time, had prescribed various norms for National Commodity Derivatives Exchanges related to staggered delivery, early delivery system, early pay-in facility, penalty on delivery default, fixation of Final Settlement Price (FSP) and changes in expiry dates. This circular is being issued to consolidate and update such norms prescribed for National Commodity Derivatives Exchanges by the erstwhile FMC.

3. Accordingly, the following are prescribed:

a. Staggered delivery

In all futures contracts for which staggered delivery is mandated, the framework shall be as given below:

• The tender period shall start with onset of the applicable staggered delivery period. In case the day happens to be a Saturday, Sunday or exchange holiday, the tender period shall start from the next working day.

• Seller/buyer shall have an option of marking an intention of giving/taking delivery on any day from start of the tender period up to e........