Sebi allows exchanges to modify commodity derivatives contracts

Sebi has classified non-material modifications as symbol, description, tick size, strikes, margins etc

The Securities and Exchange Board of India (Sebi) has decided to give more flexibility to exchanges regarding modifying contract specifications for all commodity derivatives contracts. Changes that exchanges can make include margins, launch date, among others.

The market regulator on Thursday allowed exchanges to carry out non-material modifications and report to the regulator and market participants at least 10 days in advance.

The regulator has also allowed exchanges to modify contract specifications for material modifications for all running contracts that have ‘nil’ open interest and those yet-to-be-launched contracts. Such modifications shall require approval from the product advisory committee (PAC) and the regulatory