SEBI's proposal aims to transition agricultural derivatives to physical settlement through objective triggers, aspiring to enhance transparency and market integrity.
SEBI Proposes Phased Physical Settlement in Agricultural Commodity Derivatives
The phased approach to physical settlement is designed to limit excessive market volatility and safeguard investor interests, supporting a more stable trading environment.
Legal advisors in the commodities market should prepare for these changes, as they will demand adjustments to existing practices and thorough understanding of the new settlement procedures.
Citations
- SEBI Proposal (2026)
Source:SEBI