Supreme Court: Rape Conviction Possible Without S.376 Charge if POCSO Case Fails on Age Proof  ||  SC: Mere Long Possession Can't Establish Adverse Possession; Hostile Intent is Required  ||  Supreme Court Finds Gaps in FSSAI’s Proposed Warning Labels for Foods High in Fat, Sugar and Salt  ||  Supreme Court Quashes ITS Officer's 'Deadwood' Retirement, Orders Rs. 15 Lakh Payment  ||  Uttarakhand HC: District Magistrate to Establish Public Helpline within 24 Hrs amid Water Pollution  ||  Allahabad HC: Custodial Violence and Molestation Are Crimes, Not Police Duty  ||  Gujarat High Court: Bombay Public Trust Registration is Covered by Section 43 of the Waqf Act  ||  J&K&L HC: Advocates not Above Law, No Immunity from Lawful Police Inquiry  ||  Gauhati HC: Talaq-e-Hasan Valid, Requires Registration under Assam Marriage Act  ||  NCLAT: NCLT President Empowered to Transfer Cases from One Bench to Another    

Pre-Expiry Margin on commodities under Alternate Risk Management Framework- (Securities and Exchange Board of India) (23 Feb 2021)

MANU/SDER/0003/2021

Capital Market

1. SEBI vide Circular CIR/CDMRD/DRMP/01/2015 dated October 01, 2015 and SEBI/HO/CDMRD/DNPMP/CIR/P/2019/83 dated July 26, 2019, inter alia, had prescribed norms related to Pre-Expiry Margins.

2. In light of an unprecedented event of negative final settlement price in the crude oil futures markets in the recent past, SEBI vide circular SEBI/HO/CDMRD/DRMP/ CIR/P/2020/176 dated September 21, 2020 had prescribed an Alternate Risk Management Framework (ARMF) that would be applicable in case of near zero and / or negative prices for any underlying commodities/futures. Pursuant to clause 3.2 of the aforesaid circular, Clearing Corporations had to identify commodities susceptible to the possibility of near zero and negative prices

3. The matter of negative crude oil price event was deliberated upon in the Risk Management Review Committee (RMRC) of SEBI. In this regard, one of the suggestions of RMRC was that Indian Exchanges should consider introducing some mechanism to encourage significant reduction of Open Interest as the contract approaches the expiry date.

4. In line with the recommendations of the RMRC, it has been decided in consultation with Clearing Corporations that pre-expiry margins shall be imposed on cash settled contracts wherein the underlying commodity is deemed susceptible to possibility of near zero and/or negative prices as identified by exchange/CC under ARMF circular. In case of these contracts, pre-expiry margins shall be levied during the last five trading days prior to expiry date, wherein they shall increase by 5% every day.

5. The circular shall be effective from the first trading day of the month of April 01, 2021.

6. This circular is issued in exercise of the powers conferred under Section 11(1) of the Securities and Exchange Board of India Act 1992, to protect the interests of investors in securities and to promote the development of, and to regulate the securities market.

Tags : PRE-EXPIRY MARGIN   COMMODITIES  

Share :        

Disclaimer | Copyright 2026 - All Rights Reserved