Revision of eligibility criteria for launching commodity futures contracts

SEBI has introduced Revision of eligibility criteria for launching commodity futures contracts. The revised criteria are effective from June 1, 2024. Stock exchanges must adhere to the updated guidelines, ensuring transparency and robust governance in the commodity derivatives market. Key aspects include:

1. Contract Launch and Modifications: Exchanges must launch new contracts within six months of SEBI approval. Any changes to contract specifications require SEBI’s prior approval.
2. Market Surveillance: Exchanges must monitor for unhealthy speculative trading and ensure compliance with prescribed position limits and daily price fluctuation limits.
3. Quality Standards and Compliance: Commodities traded must comply with regulations from authorities like the Food Safety Standard Authority of India, Agmark, and BIS.