SEBI pushes for physical deliveries in commodity derivative deals

The market regulator said on Monday settlement of commodity derivatives must be done through physical deliveries, though it would allow exceptions.
The logo of the Securities and Exchange Board of India (SEBI) is pictured on the premises of its headquarters in Mumbai. (File Photo | Reuters)
The logo of the Securities and Exchange Board of India (SEBI) is pictured on the premises of its headquarters in Mumbai. (File Photo | Reuters)

MUMBAI: The market regulator said on Monday settlement of commodity derivatives must be done through physical deliveries, though it would allow exceptions such as where the commodity is difficult to store or there are logistical challenges.

In cases where physical deliveries are not possible, cash settlements would be allowed, the Securities and Exchange Board of India (SEBI) said in its circular.

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