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Sebi Eyes Liquidity Boost: Examining Position Limits for Non-Agri Contracts
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News18•03-10-2026, 15:15
Sebi Eyes Liquidity Boost: Examining Position Limits for Non-Agri Contracts
- •Sebi is reviewing position limits for non-agricultural contracts to enhance liquidity and market depth without compromising risk controls.
- •Chairman Tuhin Kanta Pandey emphasized the need for market designs that allow contracts to scale, suggesting a phased approach for physical settlement in some agricultural commodities.
- •Sebi has completed consultations on these matters and will issue guidelines soon.
- •The regulator is also addressing structural friction, including GST-related issues, and leveraging technology to meet the specific needs of commodity market participants.
- •Sebi will strengthen investor awareness through Project Jagrook, focusing on farmers, FPOs, MSMEs, and hedgers, while also working towards more liquid cash markets and robust compliance.
Key Questions Answered
SEBI is examining position limits for non-agricultural contracts to improve liquidity and depth without weakening risk controls.
Project Jagrook aims to spread awareness about commodity derivatives among farmers, farmer producer organizations, MSMEs, hedgers, and other market users.
The Sebi board approved a proposal allowing foreign portfolio investors to participate in physically settled, non-agricultural commodity derivative contracts, subject to safeguards.
