The Securities and Exchange Board of India (SEBI), through Circular No. HO/47/16/13(4)2026-MRD-POD1/I/14266/2026 dated June 19, 2026, has clarified the applicability of the early pay-in facility in the Commodity Derivatives Segment by revising paragraph 11.3.1 of its Master Circular dated August 4, 2023. Based on stakeholder representations and recommendations of the Working Group and the Commodity Derivatives Advisory Committee (CDAC), SEBI has provided that Clearing Corporations shall continue to offer the early pay-in facility, allowing market participants to deposit certified goods in accredited warehouses against relevant commodity derivatives contracts. For positions where early pay-in has been made, Clearing Corporations may, based on their risk assessment, exempt all types of margins except mark-to-market (MTM) margins, which will continue to be collected. The revised framework will take effect from September 21, 2026. Stock Exchanges and Clearing Corporations have been directed to update their systems and notify market participants of the changes.
Securities and Exchange Board of India
Circular No.: HO/47/16/13(4)2026-MRD-POD1/I/14266/2026 | Dated: Jun 19, 2026
To
The Managing Directors / Chief Executive Officers
All Recognized Stock Exchanges/Clearing Corporations having Commodity Derivatives
Segment
Madam/Sir,
Subject: Clarification with respect to applicability of the benefit of early pay-in in Commodity Derivatives Segment
1. Para 11.3 of Chapter 11 of SEBI Master Circular SEBI/HO/MRD/MRD-PoD-1/P/CIR/2023/136 for Commodity Derivatives Segment dated Aug 04, 2023 prescribes norms for Early Pay-in Facility in respect of commodity derivatives.
2. Based on representations received from stakeholders and deliberations by the Working Group (WG) on “Review of current regulatory framework of delivery and settlement applicable to Agricultural Commodity Derivatives Segment and the Commodity Derivatives Advisory Committee (CDAC), paragraph 11.3.1 of the aforementioned Master Circular stands revised as under:
“11.3.1. Clearing Corporations shall provide early pay-in facility to market participants permitting them to deposit certified goods to the Clearing Corporation accredited warehouse against relevant derivatives contracts. For such positions against which early pay-in has been made, based on risk perception, Clearing Corporations may exempt imposition of all types of margins. However, Clearing Corporations shall continue to collect mark to market margins from such market participants against such positions.”
3. This circular shall come into effect from September 21, 2026.
4. The Stock Exchanges and Clearing Corporations are advised to make necessary changes to their systems for implementation of the above and bring the provisions of this circular to the notice of their members and also to disseminate the same on their website.
5. This Circular is issued in exercise of the powers conferred under Section 11 (1) of the Securities and Exchange Board of India Act, 1992, read with Regulation 51 of the Securities Contracts (Regulation) (Stock Exchange and Clearing Corporations) Regulations, 2018 to protect the interests of investors in securities and to promote the development of, and to regulate the securities market.
6. The Circular is issued with the approval of the competent authority.
7. This Circular is available on SEBI websitesebi.gov.in under the category “Legal>Circulars” and “Info for Commodity Derivatives”.
Yours faithfully,
