SEBI proposes extending early pay-in benefit to commodity options
This story was originally published at 17:17 IST on 5 May 2026
Register to read our real-time news.Informist, Monday, May 4, 2026
NEW DELHI – The Securities and Exchange Board of India on Tuesday issued a consultation paper, proposing to extend the benefit of early pay-in, currently available for futures contracts, to options contracts in the commodity derivatives segment.
The regulator has invited public comments on the draft circular by May 26. The proposal follows representations from market participants, as the facility at present allows traders to deposit certified goods in exchange-accredited warehouses against short positions in futures contracts, with exemptions from most margins except mark-to-market requirements.
The proposal has been backed by a working group reviewing the delivery and settlement framework for agricultural commodity derivatives and by the Commodity Derivatives Advisory Committee, both of which supported extending the benefit to options contracts.
Under the draft circular, clearing corporations will be permitted to provide early pay-in facilities for derivatives contracts, allowing margin exemptions for eligible short positions based on risk perception, while continuing to collect mark-to-market margins.
Once finalised, the circular will come into immediate effect and exchanges and clearing corporations will have to notify participants and update systems accordingly. End
Reported by Pallavi Singhal
Edited by Avishek Dutta
For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.
Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd. by NSE Data & Analytics Ltd., a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt. Ltd.
Informist Media Tel +91 (11) 4220-1000
Send comments to feedback@informistmedia.com
© Informist Media Pvt. Ltd. 2026. All rights reserved.
To read more please subscribe
Share this Story:
