The Securities and Exchange Board of India (SEBI) has issued a circular on 9 September 2026, modifying position limits and penalty rules for the commodity derivatives segment. The changes include revised monetary penalties for client-level position limit violations and a new definition for 'Broad Commodity'. Additionally, client-level numeric position limits are now calculated based on the annual deliverable supply for different commodity categories. These changes are intended to facilitate ease of doing business and protect investor interests.
Key points
- Monetary penalties for violations are linked to the value of the violation
- Violations exceeding 2% of limits face penalties up to Rs. 2,00,000
- Violations up to 2% of limits face penalties up to Rs. 10,000
- Broad Commodity definition updated based on deliverable supply or value
- Position limits: Broad (2%), Narrow (1%), and Sensitive (0.5%) of deliverable supply
When it applies
- Takes effect: see the original for what is due
Who it affects
- concerned member