Disseminate prices via SMS, Sebi tells commodity bourses

The Securities and Exchange Board of India (Sebi) on Tuesday asked commodity exchanges to offer price dissemination facility to subscribers through SMS on a daily basis, a move that will help bring in transparency.

"Exchanges shall make efforts for registration of subscribers of price dissemination services and disseminate derivatives prices to them on a daily basis," Sebi said in a circular.

"Such direct price dissemination service would provide information to subscribers instantly in an efficient and transparent manner and thus shall be of great benefit to market participants," it added.

The exchanges can provide this service through SMS or any other electronic communication facility — instant messengers and e-mail — for all commodities.

Service is to be provided free of cost to subscribers. However, the expenditure incurred for such price dissemination may be reimbursed from the interest accrued on the Investor Protection Fund.

Sebi has started regulating commodity markets since the merger of Forward Markets Commission with the capital markets regulator in September last year.

In a separate circular, the Sebi said, "Every recognised stock exchange and its members are required to maintain and preserve the specified books of account and documents for a period ranging from two years to five years."

All commodity derivatives exchanges can permit trading only from Monday to Friday from 10 am to 5 pm.

"Exchanges shall ensure they have necessary risk management system and infrastructure in place commensurate with their trading hours," the regulator said.

With regard to trading holidays, all exchanges will have to jointly decide on the common holiday list within the broad framework and also take central or state or local holidays into consideration and notify the same to the market well in advance with prior intimation to the Sebi.

"On such trading holidays, national exchanges may permit trading of internationally referenceable commodities in evening session — post 5 pm — in case corresponding international markets are open," it added.

The provisions of these circulars will come into effect from September 29.