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SEBI's new norms for derivatives: SEBI has reduced the phased delivery period in the commodity derivatives segment. The new rule will come into effect from July 1, 2024. This information has been given in the circular issued by SEBI.
Ordered delivery period reduced to 3 days
A circular has been issued on May 24 to reduce the delivery period. According to the circular issued by SEBI, SEBI has now reduced the staggered delivery period from 5 days to 3 days. The staggered delivery period is the time before the expiry of the contract where the buyer or seller can express their desire to exchange delivery with an open position. This time has now been reduced to 3 days.
For this reason, a time limit for sequential delivery was set
SEBI in 2019 found that different exchanges were adopting different delivery schedules, following which SEBI prescribed a minimum time limit for phased delivery. While in the master circular dated August 4, 2023 for commodity derivatives segment, SEBI said that the exchanges may extend the delivery period for any commodity futures contract taking into account the signals from open interest records, expiry volumes, etc. This provision will still remain applicable.
Even before this, SEBI has taken many big decisions. One of these is related to removing the impact on shares due to rumors in the stock market. Market regulator SEBI has issued new guidelines in this regard. According to the rules, if any unconfirmed news or rumor causes a big difference in the stock, then that news or report has to be confirmed or denied within 24 hours. The company will have to clarify its position. According to SEBI's circular, if the rumor is confirmed, then according to the rules, the shares will be considered as unaffected price.
Unaffected price is the level of a stock that is not affected by news or rumors. It is an estimate of what the stock price would have been if the rumor had not come out.