SEBI proposes pilot for cash settled agri commodity F O before physical settlement

Published on 13 May 2026

Trading could start cash settled before farmers get physical delivery

SEBI is considering a pilot that would let certain agricultural commodity derivatives trade as cash settled instruments before mandatory physical settlement. The plan is meant to improve liquidity and market confidence in agri contracts. SEBI is reportedly evaluating commodities such as maize, groundnut, and chilli for the trial, with further details expected.

SEBI proposes a pilot easing settlement for select agri derivatives
Cash settled trading could occur before physical settlement is required
Goal is higher liquidity and stronger market confidence
Maize groundnut and chilli are among commodities considered

#futures and options #sebi #market liquidity #agri commodities #commodity derivatives

Read the full story at The Economic Times

This summarization was done by Beige for a story published on The Economic Times

SEBI proposes pilot for cash settled agri commodity F O before physical settlement

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