Sebi to introduce commodity position limits to curb price fluctuations

Sebi will create three categories for agricultural commodities and will introduce limits that investors can hold for each one.
The logo of the Securities and Exchange Board of India (SEBI) is pictured on the premises of its headquarters in Mumbai, March 1. (File Photo | Reuters)
The logo of the Securities and Exchange Board of India (SEBI) is pictured on the premises of its headquarters in Mumbai, March 1. (File Photo | Reuters)

NEW DELHI: The Securities and Exchange Board of India (SEBI) is creating three categories for agricultural commodities and will introduce limits that investors can hold for each one to try to reduce price fluctuations.

Commidities will be classed as sensitive, broad or narrow, bassed on the frequency of government interventions in their markets and overall availability, SEBI said on Tuesday.

The new position limit for sensitive commodities will be 0.25 percent of deliverable supply, SEBI said in a circular.

It will be 0.5 percent for narrow commodities and 1 percent for broad commodities, it added

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