Securities and Exchange Board of India (SEBI) issued a circular on June 12, 2025, to all recognized stock exchanges operating in the commodity derivatives segment. This circular revises the provisions concerning the Product Advisory Committee (PAC), which stock exchanges are mandated to constitute for various commodity groups. Based on feedback from market participants and discussions by SEBI’s Commodity Derivatives Advisory Committee, the Master Circular for Commodity Derivatives Segment (dated August 4, 2023) has been updated. Specifically, paragraph 2.4.4.i is revised to state that while PACs for non-agricultural commodities shall continue to meet at least twice a year, PACs for agricultural commodities are now required to meet at least once a year. This change is effective immediately. Stock exchanges are directed to inform their members and disseminate this circular on their websites. This amendment is issued under SEBI’s authority to protect investor interests and regulate the securities market.
Securities and Exchange Board if India
Circular No. SEBI/HO/MRD/MRD-PoD-1/P/CIR/2025/087 Dated: June 12, 2025
To
The Managing Directors / Chief Executive Officers
All Recognized Stock Exchanges having Commodity Derivatives Segment
Madam/Sir,
Sub: Review of provisions relating to Product Advisory Committee (PAC)
1. SEBI vide ‘Master Circular for Commodity Derivatives Segment’ dated August 04, 2023 (‘Master Circular’) has issued various requirements for stock exchanges and clearing corporations for compliance in commodity derivatives segment. Chapter 2 of the Master Circular mandates that each stock exchange 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 stock exchange.
2. Based on representations received from market participants and deliberations by Commodity Derivatives Advisory Committee (CDAC) of SEBI, paragraph 2.4.4.i. of the aforementioned Master Circular on Proceeding of meetings stands revised as under:
“2.4.4.i. The PAC shall meet at least twice a year and more frequently as and when required. However, in case of agricultural commodities, the PAC shall meet at least once a year.”
3. The Circular shall come into force with immediate effect.
4. The Stock Exchanges are advised to 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, 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 website sebi.gov.in under the category “Circulars” and “Info for Commodity Derivatives”.
Yours faithfully,
Neetika Rajpal
Deputy General Manager
Market Regulation Department
Email: neetikar@sebi.gov.in
Phone number:022-26449628
