Permission for trading in futures contracts and modification in contract specifications at exchange level

CIRCULAR SEBI/HO/CDMRD/DRMP/CIR /2016/88

September 20, 2016

To,

The Managing Directors/Chief Executve Officers,

National Commodity Derivatives Exchanges

Sir/Madam,

Sub: Permission for trading in futures contracts and modification in contract specifications at exchange level

1. As per Section 131 (4) of the Finance Act, 2015 all rules, directions, guidelines, instructions, circulars, or any like instruments, made by the erstwhile Forward Markets Commission (FMC) or the Central Government applicable to recognised associations under the Forward Contracts Regulation Act, 1952 (FCRA) would continue to remain in force for a period of one year from the date on which FCRA was repealed (September 29, 2015), or till such time as notified by SEBI, whichever is earlier.

2. Erstwhile FMC, from time to time, had issued various norms for National Commodity Derivatives Exchanges related to permission for trading in futures contracts and modification in contract specifications at exchange level. This circular is beingissued to consolidate and update such norms prescribed for National Commodity Derivatives Exchanges by the erstwhile FMC.

3. Accordingly, the following are prescribed:

a. Check-list of information/details to be submitted along with proposal for launch of new contract or/and for renewal of existing/earlier contracts

All proposals of exchange for launch of new contract and/or for renewal of existing/earlier contracts shall be accompanied by complete information covering all the points delineated in the check-list appended at Annexure 1.

The parameters / items listed in the check-list for compliance are illustrative and not exhaustive. Any additional relevant parameter/information as deemed necessary may also be furnished while sending proposal for contracts.

Please refer to the attached file for details