SC: Omitted Relief Barred Despite Liberty to File Fresh Suit under Order 23  ||  SC: Custodial Confession Alone Cannot Justify Preventive Detention  ||  SC: Failure to Pay Balance Sale Amount Can Lead to EMD Forfeiture under Auction Terms  ||  Gujarat HC: CIC Cannot Order Suo Motu Disclosure of PM Modi’s Degree under RTI Act  ||  MP HC: FIR Cannot Be Quashed Merely for Not Specifying Accused’s Role  ||  MP HC: Joint Family Status Alone Does Not Establish Existence of Joint Family Funds  ||  MP High Court Directs State Bar Council to Frame Stipend Guidelines for Junior Advocates  ||  Allahabad High Court: Hookah Bars cannot Operate in UP; Clean Air Prevails over Trade  ||  P&H HC: High Court’s Inherent Powers Cannot Be Used to Entertain a Second Revision  ||  Delhi HC: Magistrate Must Examine Complainant, Hear Accused Before Taking Cognisance    

Permission for trading in futures contracts and modification in contract specifications at exchange level- (Securities and Exchange Board of India) (20 Sep 2016)

MANU/SDER/0020/2016

Capital Market

As per Section 131 (4) 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Regulation Act, 1952 (FCRA) would continue to remain in force for a period of one year from the date on which FCRA was repealed (September 29, 2015), or till such time as notified by SEBI, whichever is earlier.

Erstwhile FMC, from time to time, had issued various norms for National Commodity Derivatives Exchanges related to permission for trading in futures contracts and modification in contract specifications at exchange level. This circular is beingissued to consolidate and update such norms prescribed for National Commodity Derivatives Exchanges by the erstwhile FMC.

To ensure that Exchanges are enabled to respond to the market requirements quickly, National Commodity Derivatives Exchanges are permitted to modify the futures contract specifications related to Ticker symbol, Basis, Maximum order size, Trading unit, Delivery unit, Quotation base value, Tick size, Delivery centers, additional delivery centers, issue related to Premium/Discount, Quality parameters and its relevant aspects such as Quantity variation and Tolerance limit in the futures contract specifications. The permission to modify the above parameters of the futures contract specifications is subject to the condition that Exchanges shall invariably inform the market participants and the regulator well in advance before introduction of any modification in contract specifications with reasons for the modifications.

Circular is issued in exercise of the powers conferred under Section 11(1) of the Securities and Exchange Board of India Act 1992, read with Section 10 of the Securities Contracts (Regulation) Act, 1956 to protect the interest of investors in securities and to promote the development of, and regulate the securities market.

Tags : CONTRACTS   PERMISSION   EXCHANGE LEVEL  

Share :        

Disclaimer | Copyright 2026 - All Rights Reserved