SEBI eases margin rules for commodity derivatives in India

The Securities and Exchange Board of India (SEBI) has lowered margin requirements for commodity derivatives positions that are backed by early delivery of the underlying goods. Under the revised framework, clearing corporations may exempt eligible positions from all margin types, while mark‑to‑market (MTM) margins will continue to be collected. The change is intended to align margins with reduced risk, improve price discovery, increase liquidity and encourage broader participation by producers, processors and traders. SEBI said the move is part of its broader effort to modernise India’s commodity markets and create a more robust regulatory environment. The circular implementing the amendment is scheduled to take effect on 21 September 2026.