Sebi changes risk norms for commodity derivatives

Mumbai: The Securities and Exchange Board of India said members of clearing corporations in commodity derivatives segment will have to maintain a minimum liquid net-worth of atleast Rs 50 lakhs.

The move is aimed at aligning norms related to base minimum capital requirement and liquid net-worth of clearing corporations in commodity derivatives with equity and currency derivatives.

The regulator said trading members of commodity derivatives exchanges,who have deposited their own fixed deposit receipts(FDR) or FDR of associate banks,should replace such collateral with other eligible collateral within a period of three months.