Staggered delivery, early delivery system, early pay-in facility, penalty on delivery default, fixation of FSP and changes in expiry dates- (Securities and Exchange Board of India) (21 Sep 2016)
MANU/SMIS/0007/2016
Capital Market
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Regulation Act, 1952 (FCRA) would continue to remain in force for a period of one year from the date on which FCRA was repealed (September 29, 2015), or till such time as notified by SEBI, whichever is earlier.
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.
This 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 : RULES CONTRACTS CONTINUATION
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