Sebi eyes big derivatives overhaul dropping CTM rules and easing PAC checks for commodity options

CTM options could vanish because global exchanges avoid them

Sebi has floated proposals to simplify the rules for exchange-traded and commodity derivatives, aiming to cut compliance burden and uncertainty. In a discussion paper, it suggests deleting close-to-money (CTM) option series and related norms for commodity options in goods, arguing CTM adds complexity and pricing risk. It also wants fewer mandatory PAC meetings for non-agricultural commodities, down from two annually to one. Further, exchanges could shift contract expiry earlier during disruptions with managing director approval instead of 10-day notice and PAC clearance.