Sebi directs commodity exchanges to hold at least two Product Advisory Committee (PAC) meetings annually, with higher frequency if needed. Agricultural commodities require at least one annual meeting.
However, in the case of agricultural commodities, the PAC is required to meet at least once annually.
Sebi’s ‘Master Circular for Commodity Derivatives Segment’ in August 2023 issued various compliance requirements for stock exchanges and clearing corporations operating in the commodity derivatives segment.
As per the Master Circular, each stock exchange is mandated to constitute a Product Advisory Committee for every group or complex of commodities that share common stakeholders or value chain participants, and on which derivatives are either currently traded or proposed to be introduced.
Based on representations from market participants and following deliberations by Sebi’s Commodity Derivatives Advisory Committee (CDAC), the regulator has revised the meeting frequency guidelines for PACs.
“The PAC shall meet at least twice a year and more frequently as needed. However, for agricultural commodities, the PAC shall meet at least once a year,” Sebi said in its circular.
The revised guidelines take effect immediately.