SEBI Update - Clarification with respect to applicability of the benefit of early pay-in in Commodity Derivatives Segment

SEBI has clarified the applicability of the Early Pay-in (EPI) facility in the Commodity Derivatives Segment by revising Para 11.3.1 of the Master Circular dated August 4, 2023. Under the revised framework, Clearing Corporations shall continue to provide EPI facilities allowing market participants to deposit certified goods in accredited warehouses against relevant commodity derivative contracts. For positions where early pay-in has been made, Clearing Corporations may, based on their risk assessment, exempt participants from all types of margins; however, collection of mark-to-market (MTM) margins shall remain mandatory for such positions. The circular will come into effect from September 21, 2026, and stock exchanges and clearing corporations have been directed to implement necessary system changes and disseminate the provisions to their members.