The Indian Clearing Corporation Limited (ICCL) on April 29, 2026, issued the Master Circular for the Commodity Derivatives Segment.
The following has been stated:
• The Master Circular consolidates all applicable regulatory guidelines, procedures, and risk management frameworks governing the clearing and settlement of commodity derivatives trades in line with the Securities and Exchange Board of India directives. It lays down comprehensive provisions on trading operations, margining systems, collateral management, settlement mechanisms, and default handling, ensuring that clearing members maintain adequate margins and comply with exposure limits to manage market risk.
• The circular also covers participant eligibility (including FPIs, mutual funds, and portfolio managers), position limits, product guidelines, and disclosure requirements, along with rules for arbitration, grievance redressal, and investor protection.
• It standardizes procedures such as pay-in/pay-out, reporting of technical glitches, and maintenance of records, while empowering exchanges and clearing corporations to implement safeguards for orderly trading.
• Importantly, the circular supersedes earlier circulars but preserves past actions, creating a unified and updated regulatory framework aimed at enhancing transparency, risk control, and stability in the commodity derivatives market.
[Notification no. - 20260429-40]
