Review of Client Position Limits and Penalty Provisions in Commodity Derivatives Segment

Category	Details
Title / Headline	Review of Client Position Limits and Penalty Provisions in Commodity Derivatives Segment
Circular Ref. No.	HO/47/16/13(5)2026-MRD-POD1/ I/20735/2026
Issuing Authority	Securities and Exchange Board of India (SEBI)
Effective From	09 September 2026
Purpose	Revision of client-level position limits in agricultural commodity derivatives. Modification in definition of broad commodity. Rationalization and capping of penalties for position limit violations.
Interpretation of Circular	Broad Commodity: 2% of deliverable supply. Narrow Commodity: 1% of deliverable supply.Sensitive Commodity: 0.5% of deliverable supply.Excess positions must be reduced by next trading day, failing which exchanges may square off positions.
Impact on Sub-Brokers	Educate clients on monitoring large exposures. Advise clients regarding revised position limits and potential penalties.
Impact on Clients (BOs)	Monitor revised limits. Ensure prompt reduction of excess positions to avoid penalties and square-off actions.

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