The Security and Exchange Board of India vide its notification dated 11th January 2021 has revised certain norms on daily price limits for agricultural and non-agricultural commodity derivatives.
As per the revised norm, the base price for fixing the DPL slabs shall be the previous day’s closing price of the underlying contract on the respective stock exchange and the stock exchanges shall ensure that their system should only accept those orders which are within the relevant prescribed slab at any point of time.
In order to prescribe DPL slabs for the first trading day (launch day) of each Contract, Stock Exchange shall determine base price as under:
Volume Weighted Average Price (VWAP) of the first half an hour, subject to a minimum of ten trades and If a sufficient number of trades are not executed during the first half an hour, then the VWAP of the first-hour trade subject to a minimum of ten trades shall be considered. If a sufficient number of trades are not executed even during the first hour of the day, then VWAP of the first ten trades during the day shall be considered.
The revised norms shall come into effect from 1st April 2021.
