The Securities Exchange Board of India (SEBI) on May 05, 2026, issued the Consultation Paper on Draft Circular on Clarification with respect to the Applicability of the benefit of Early Pay-In in the Commodity Derivatives Segment.
The following has been stated:
• It has issued a consultation paper proposing to extend the Early Pay-In (EPI) facility—currently available for futures contracts—to options contracts in the commodity derivatives segment. Under the existing framework prescribed in the SEBI Master Circular for Commodity Derivatives Segment dated August 04, 2023, market participants can deposit certified goods in accredited warehouses against futures contracts sold, enabling potential margin exemptions (except mark-to-market margins). However, this benefit is presently not available for options contracts.
• Based on industry representations and recommendations from the Working Group and the Commodity Derivatives Advisory Committee (CDAC), SEBI proposes to revise Para 11.3.1 to allow EPI benefits for all derivatives contracts, including options. The draft circular also shifts responsibility from stock exchanges to clearing corporations for providing the facility.
• The proposal aims to improve operational efficiency, align risk management practices, and enhance market participation in commodity derivatives.
• Public comments on the draft circular are invited until May 26, 2026, after which SEBI will finalize the framework.
