The Securities and Exchange Board of India (SEBI) on Wednesday issued a comprehensive risk management framework for regional commodity derivatives exchanges, including deposits required for members and margins need to be levied.
The circular will be implemented by April 1, 2016.
All recognised associations under the Forward Contracts (Regulation) Act, 1952 are deemed to be stock exchanges under the Securities Contracts (Regulation) Act, 1956, with effect from September 28, 2015, the day when merger of commodity markets regulator FMC with SEBI became effective.
SEBI said regional commodity derivate exchanges would continue with their practice of keeping exposure free member deposits at the current level.
The exchanges will levy minimum ordinary margins of four per cent on the open outstanding positions.
