SEBI Lowers Turnover Threshold For Agricultural Commodity Options To Rs 100 Crore

SEBI has adjusted regulatory requirements for launching options contracts on agricultural and agri-processed commodities, effective June 1, 2024. \r

The average daily turnover threshold for these futures contracts has been halved from Rs 200 crore to Rs 100 crore, following representations from market participants and discussions by SEBI's Commodity Derivatives Advisory Committee (CDAC). \r

Under the new guidelines, stock exchanges can introduce options on agricultural and agri-processed commodities futures if these futures maintain an average daily turnover of at least Rs 100 crore over the preceding twelve months. Amendments to exchange bye-laws, rules, and regulations are mandated for implementation, aiming to safeguard investor interests and foster market development.