September 27, 2022
The Managing Directors / Chief Executive Officers
Of All Exchanges having Commodity Derivatives Segment
Sir / Madam,
1. SEBI vide Circular No. SEBI/HO/CDMRD/DNPMP/CIR/P/2021/9 dated January 11, 2021 has revised the norms for Daily Price Limit (DPL) for commodity futures contracts.
2. The exchanges have informed that closing price on domestic exchange differs from closing price on international exchange/s (after necessary currency conversion), because of difference in methodology of calculation of closing price. Due to such difference in closing price, the aggregate DPL range on domestic exchange may lag behind (either upwards or downwards) the prices on international exchange in next trading session.
3. To resolve the above, the Clause 7.4 of aforementioned SEBI Circular is substituted with the following:
“7.4 In case the price movement in the international markets is more than the aggregate DPL or if international price is beyond aggregate DPL range (after appropriate currency conversion) when compared with closing price on previous day on domestic exchange, the same maybe further relaxed in stages of 3% by the Exchange with cooling off period of 15 minutes. For such instances, the Stock Exchanges shall give appropriate notice to the market along with all the relevant details and justification for the same.”
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