SEBI proposes early pay-in in commodity options

Capital market regulator SEBI plans to introduce early-pay-in settlement in options contracts in the commodity derivatives segment. Currently, the early pay-in benefit is available only in commodity futures contracts.

In a consultation paper issued on Tuesday, SEBI said it has received representations requesting to provide EPI benefit on options contracts as it is currently available only in respect of futures contracts.

The proposal was examined and deliberated in the meeting of the Working Group (WG) on review of current regulatory framework of delivery and settlement applicable to Agricultural

Commodity Derivatives Segment. Based on discussion, the WG recommended that early pay-in benefit may also be made applicable to options contract, it said.

Further, the recommendation of the WG was also placed before the Commodity Derivatives Advisory Committee meeting held in February, which also broadly agreed on the same.

SEBI expects comments on their comments by May 26.

www.thehindubusinessline.com, dt. 06-05-2026