SEBI has revised the position limit and penalty framework applicable to the Commodity Derivatives segment, amending Chapter 3 of the Master Circular dated August 4, 2023.
Key Changes:
1. Penalty for Position Limit Violations (Annexure J)
Violation exceeding 2% of prescribed limit: Penalty = 2% of (limit exceeded × closing price × number of days), capped at ₹2,00,000
Violation up to 2% of prescribed limit: Same formula, capped at ₹10,000
Members must correct the position by the next trading day; failing this, the exchange may square off the excess position without prior notice
Repeated violations (more than 3 times in a month) may attract square-off mode for a day and/or additional penalty (with relief for violations solely due to clubbing of positions)
Penalties are credited to the Exchange's Investor Protection Fund
2.Revised Definition of "Broad Commodity"
An agricultural commodity now qualifies as "Broad" if its average deliverable supply over the past 5 years is at least 10 lakh Metric Tonnes, or at least ₹5,000 crore in value (provided it is not already classified as "Sensitive").
3. Revised Client-Level Position Limits
Category Position Limit
Broad 2% of deliverable supply
Narrow 1% of deliverable supply
Sensitive 0.5% of deliverable supply
