Sebi directs commodity derivatives exchanges to form advisory panel

NEW DELHI: Markets regulator Sebi on Wednesday directed stock exchanges dealing in commodity derivatives segment to constitute Product Advisory Committee (PAC) so as to bring transparency in the designing process of commodity derivatives contract. The committee has to be constituted for “each group or complex of commodities having common stakeholders/value chain participants, on which derivatives are traded or being proposed to be traded on the exchange,” the regulator said in a circular.

The move is aimed at catering to the needs of the physical market participants and is based on the advice of the commodity derivatives advisory committee. Consultation of the committee can be taken in matters related to contract design of new commodities and review of design of existing contracts, performance review of the existing contracts on various parameters, it said. PAC can be consulted for recommendations on delivery centres.