9911796707
TMI BlogRevision in Daily Price Limits (DPL) for Commodity Futures ContractsX X X X Extracts X X X X X X X X Extracts X X X X ..... ides cooling-off period to re-assess the information and fundamentals impacting the price of the commodity futures contract. Thus, DPLs can neither be too narrow nor too wide as it will restrict fair price discovery. 2. SEBI vide Circular no. CIR/CDMRD/DMP/2/2016 dated January 15, 2016 and Circular no. SEBI/HO/CDMRD/DMP/CIR/P/2016/83 dated September 07, 2016 had issued norms for Daily Price Limits (DPL) for agricultural and non-agricultural commodity derivatives. Continuing with SEBI's endeavor to develop the commodity derivatives market and in consultation with the stock exchanges, the norms for DPL for commodity futures contracts (excluding Index Futures and options) are being revised. The revised norms are given below. 3. Base price ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rading shall be permitted throughout the day within the enhanced Aggregate DPL. 7. DPL for Commodity futures contracts which are based on non-agricultural goods 7.1. Following slabs shall be applied for DPL on futures contracts based on non-agricultural goods: Table B Category Initial Slab Enhanced Slab Aggregate DPL Trading beyond Aggregate DPL Energy 6% 3% 9% Yes Metals and Alloys 6% 3% 9% Yes Precious Metals 6% 3% 9% Yes Gems and Stone 3% 3% 6% No Other Non- agricultural goods 6% 3% 9% No 7.2. Once the initial slab limit is breached in any contract, the DPL for that contract shall be relaxed further by the 'Enhanced Slab' after the cooling off period of 15 minutes in the trading. 7.3. During the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ades are not executed even during the first hour of the day, then VWAP of the first ten trades during the day shall be considered. 8.2. The base price arrived as per Para 8.1.1 or Para 8.1.2 or Para 8.1.3 above, as the case may be, shall be calculated by the Exchange and shall be used to determine DPL for the remaining part of the day. 8.3. However, in case there is no trade during the day or there are less than ten trades during the day, the exchange shall adopt an appropriate methodology for determining the base price and disclose the same on their website for dissemination to the stakeholders. DPL on the next trading day will be applicable on such base price. 9. Calculation of closing price or daily settlement price (DSP) 9.1. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 07, 2016 and Clause 1(a) of SEBI Circular no. CIR/CDMRD/DMP/2/2016 dated January 15, 2016 shall stand repealed from the date of implementation of this Circular. 14. This Circular is issued in exercise of powers conferred under Section 11 (1) of the Securities and Exchange Board of India Act, 1992, to protect the interests of investors in securities and to promote the development of, and to regulate the securities market. 15. The Stock Exchanges are advised to: 15.1. to make necessary amendments to the relevant bye-laws, rules and regulations; 15.2. bring the provisions of this circular to the notice of the stock brokers of the Exchange and also to disseminate the same on their website; and 15.3. communicate to SEBI, the status ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
