The Securities Exchange Board of India through circular dated August 9, 2021 has extended the Calendar Spread margin benefit in commodity futures contracts. SEBI previously prescribed norms for providing margin benefit on calendar spread positions in commodity futures contracts for the first three expiries. Considering the possible benefits likely to accrue to the investors, in consultation with clearing corporations, it has been decided to extend the spread margin benefit beyond the first three expiries.
The In case of calendar spreads or spreads consisting of two contract variants having the same underlying commodity (wherein currently 75% benefit in initial margin is permitted), benefit in initial margin shall be permitted when each individual contract in the spread is from amongst the first six expiring contracts.
