 "New norms for risk management at commodity markets")
It has also put in place measures such as staggered delivery system, fixation of final settlement price (FSP) and change in expiry date.
The norms would come into effect immediately, Sebi said in a circular.
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Sebi has started regulating commodity markets after the merger of the Forward Markets Commission (FMC) with the regulator in September last year.
This circular is being issued to consolidate and update such norms prescribed for commodity bourses by erstwhile FMC.
Under the staggered delivery, in all futures contracts tender period would start with onset of the applicable staggered delivery period. In case the day happens to be a holiday, the tender period would start from next working day.
"Seller/buyer shall have an option of marking an intention of giving/taking delivery on any day from start of the tender period up to expiry of the contract. If the tender date is T, then pay-in and pay-out shall happen latest by T+2 working day," Sebi said.
Open position on expiry of the contract would result in compulsory delivery and would be settled at FSP of the respective contracts and pay-in and pay-out would happen latest by the second working day after expiry.
With regard to an early delivery, Sebi said such facility may be provided during E-14 to E-1 days (where E stands for expiry day) of the contract during which buyers/sellers can give intention to take/give delivery. If the intentions of the buyers/sellers match, then respective positions will be closed out by physical deliveries.
The process of pay in and pay-out will be completed on T+2 basis, where 'T' stands for the day on which matching has been done.
"If there is no intention matching for delivery between sellers and buyers, then such delivery intention will get automatically extinguished at the close of E-1 day. The intentions can be withdrawn during the course of E-14 to E-1 day if they remained unmatched," the regulator noted.
Sebi said exchanges will provide early pay-in facility to market participants permitting market participants to deposit certified goods to the bourse accredited warehouse against relevant futures contracts sold.
The regulator said penalty on seller will be imposed in case of delivery default (default in delivery against open position at expiry in case of compulsory delivery contracts and default in delivery after giving intention for delivery.
The exchange can advance expiry date of running contract in case physical market is closed in the notified basis centre on the expiry day of the contract due to festivals, strikes and erratic weather conditions. Such decision will be intimated to participants at least 10 days before the revised expiry date.
"For contracts where FSP is determined by polling, unless specifically approved otherwise, the FSP shall be arrived at by taking the simple average of the last polled spot prices of the last three trading days," Sebi said.