Securities and Exchange Board of India

CIRCULAR

SEBI/HO/CDMRD/DNPMP/CIR/P/2019/89

August 07, 2019

To,

The Managing Directors / Chief Executive Officers
All Recognized Stock Exchanges having Commodity Derivatives Segment

Sub: Product Advisory Committee

Dear Sir/Madam,

1. In order to bring transparency in the design process for commodity derivatives contract so that it caters to the needs of the physical market participants and based on the advice of the Commodity Derivatives Advisory Committee (CDAC), it has been decided that each recognised stock exchange dealing in commodity derivatives segment shall constitute a Product Advisory Committee (PAC) for each group/complex of commodities having common stakeholders/value chain participants, on which derivatives are traded or being proposed to be traded on the exchange.

1.1. Terms of Reference

The PAC shall be consulted for the following:

  • Contract design on new commodities and review of design of existing contracts, to ensure that contract specifications represent the industry’s needs:
    • alignment of quality/quantity specifications of the product with the physical market
    • choice of basis and additional delivery centers
    • appropriate premium/discount for additional deliverable quality/ delivery at additional delivery center, etc.
  • Discussion on the “State of the Markets for the commodity” at every meeting.
  • Review of the delivery centres as well as recommendations with respect to modifications of delivery centres.
  • Review of suggestions/feedback/complaints received by the exchange regarding the commodity/contract and action taken thereon.
  • Performance review of the existing contracts on various parameters.
  • Any other related matter thereof.

Exchange shall have the right to accept, reject or modify any recommendations made to it by the PAC, by recording the reasons thereof.

1.2. Composition

a) The PAC shall have a balanced representation from amongst the following categories of stakeholders:

  • Representatives from Trade Associations representing various value chain participants
  • Representatives from various Stakeholders and value chain participants such as producers, traders, consumers, Farmers & Farmers Producers Organisations (FPOs)/Cooperative societies in case of agricultural commodities, SMEs/MSMEs etc.
  • Representative(s) from warehousing/ assaying sector
  • Independent Expert(s) in the specific commodity group
  • Representative(s) from financial sector (such as Financial Institutions, brokers, etc.)
  • Representative(s) from Exchange/ clearing corporation responsible for specific commodity.

b) Each PAC meeting shall be headed by a Chairman (who shall be an independent person with experience in the specific commodity) selected as such for the meeting based on attendees’ choice. PAC shall have an exchange executive as Vice Chairman for administrative coordination/decision.

1.3. Proceeding of meetings

1. The PAC shall meet at least twice a year and more frequently as and when required.

2. The Exchange shall prepare the agenda for the meeting based on the views and requirements of value chain participants and also taking into account any suggestions/feedback/complaints received by the exchange regarding the commodity/contract.

3. In the PAC meetings at least 50% members (excluding representative from exchange/Clearing Corporation) shall be present, including its chairman or vice chairman (acting chairman).

1.4. Disclosure

For each PAC, the exchange shall make following disclosures on its website:

  • Composition of Committee- Name of the member, Organisation, Sector
  • Terms and reference of the Committee
  • The Committee shall be at liberty to publicise agenda items with the Exchange’s prior concurrence in order to encourage market participants to contribute their point of view.

1.5. Confidentiality and Conflicts of Interest

a) PAC members must ensure that, unless outside consultation is specifically agreed, all matters discussed and all materials and data made available to them in respect of their Committee-related activities are kept confidential at all times. Exchange shall formulate a code of conduct to be adhered to as a member of the Committee.

b) If there is a conflict of interest arising for a member out of any matter proposed to be discussed at a Committee meeting or a matter that comes for discussion in the course, in a Committee meeting, such committee member must absent himself from discussion on that matter and the minutes of the meeting must record the same.

2. There should be an annual review of the PAC’s performance by the Regulatory Oversight Committee of the Stock Exchange.

3. This circular is issued in exercise of the powers conferred under Section 11(1) of the Securities and Exchange Board of India Act 1992 to protect the interests of investors in securities and to promote the development of, and to regulate the securities market.

4. The circular would be effective from one month from the date of the circular.

5. Exchanges are advised to:

i. to make necessary amendments to the relevant bye-laws, rules and regulations.

ii. bring the provisions of this circular to the notice of the stock brokers of the Exchange and also to disseminate the same on their website.

iii. communicate to SEBI, the status of the implementation of the provisions of this circular.

6. This circular is available on SEBI website at www.sebi.gov.in under the category “Circulars” and “Info for Commodity Derivatives”.

Yours faithfully,

Vikas Sukhwal
General Manager
Division of New Products and Market Policy
Commodity Derivatives Market Regulation Department
vikass@sebi.gov.in 

(Above post been published after replacing earlier post which become obsolete now but comments are not been removed)

More Under SEBI

38 Comments

  1. Askar Ali says:

    My name is Askar Ali. I registered for GST Practitioner exam and got enrollment number.
    Shall I attend exam on 14th June ? If yes, How I will apply for it ?

  2. P. Radha Manohar Reddy says:

    Sir,
    I am a govt. employe working in Department of state taxes, any fecility available to get online course of GST clases.

  3. Jai Bhagwan Kaushik says:

    Can I do the Course of GST PRACTITIONER ?

    I am Graduate with B-Com with 2Years Experience in manufacturing unit as an accountant.

  4. Subhasish Basu says:

    Hi, myself Subhasish Basu interest to enroll in 4 days GST course in the month of Oct’18 within 14.10.18 in Gurgaon or Delhi.. If there is no batch within the specific period of 1st Oct’18 to 14.10.18, then will join in the month of Nov’18 but only in Gugaon or Delhi.

  5. S N Murthy says:

    Sir/Madam
    How to enroll G S T certification course online. What is the procedure. How i will get course material.

    Please mail to the below mail id

  6. Mehra R says:

    Thanks- Please discontinue sending me mails as I do not live in India. I greatly appreciate your efforts to make people understand and educate them. Mehra

  7. Mr. Naththu Dhoman Patil says:

    I N.D. Patil And Sons Pro; N.D. Patil From SHIRPUR CITY District – Dhuli wish To Join 4 Days GST Certification Course at MSME SAKINAKA OFFICE ANDHERI Sir. My GSTIN No . is as 27AKSPP2666H1ZJ. On Counter I shal Pay Rs.7500/- For This Course Fees To GOI.I Am Grain Broker In SHIRPUR Krushi Mandi Since 2004., I Am B.A. HONS Through University of Poona of The Year 1974..

  8. S Kumar says:

    The courses should be kept around Thursday and Fridays rather than keeping it on Holidays, so that working professionals could be benefited.

  9. SYEDA KHADERBI, M.A., M.Com., says:

    I am in support of the view of Shri Ravichandran. Yes when the Certificate is to awarded by the MSME (Government of India), the General Graduates (B.A.,) Holding such Certificate to be awarded by the MSME (Government of India) must be recognized for Enrollment as GSTPs. Yes, it ought to be.

  10. SYEDA KHADERBI, M.A., M.Com., says:

    I am in support of the view of Shri Ravichandran. Yes when the Certificate is to awarded by the MSME (Government of India), the General Graduates (B.A.,) Holding Certificate is to awarded by the MSME (Government of India) must be recognized for Enrollment as GSTPs. Yes, it ought to be.

  11. Ravichandran says:

    If i complete the course. Who’s issue the certificate. MSME or govt of India. Further with this certificate can I register myself as GST practioner on GST portal. PL.reply.

  12. anita menghrajani says:

    I am in vadodara, can u arrange the course in vadodara bcaue in ahmedabad i am unable to join it.
    i am available in mumbai from 16/3/18 to 4/4/18 if the course arranged in these days pl inform. or advice me how i can attend this course. previously in the month of may i attend the 4 days course in D N NAGAR RD ANDHERI.

    1. snpanigrahi says:

      Join 4 days
      Govt. Certification Course on GST
      by Ministry of MSME
      @ Hyderabad on
      17,18,24,25 Mar 2018
      For More Details Contact
      Ms Divya @8171291159 (or)
      Mr. Goutam @ 09548659916 (or)
      Mr. Rajkumar @ 09059910881

    1. snpanigrahi says:

      Join 4 days
      Govt. Certification Course on GST
      by Ministry of MSME
      @ Hyderabad on
      17,18,24,25 Mar 2018
      For More Details Contact
      Ms Divya @8171291159 (or)
      Mr. Goutam @ 09548659916 (or)
      Mr. Rajkumar @ 09059910881

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