Additional commodities as Eligible Liquid Assets for Commodity Derivatives Segment
The list of commodities/commodity groups permitted as Liquid Assets consists of Bullion, Steel and Agricultural commodities. Considering the introduction of compulsory delivery based Diamond and Base metal derivatives contracts and feedback received from the stakeholders, it has been decided to include Diamond, Base metals and Alloys in the list of permissible liquid assets, subject to concentration limits for non-bullion collateral as specified vide SEBI Circular dated October 14, 2016 and Minimum Haircut as mentioned below:-
| Item | Minimum Haircut |
| Base Metals and Alloys * | 30% |
| Diamond | 40% |
*Steel being an Alloy, minimum haircut stipulated for Steel stands revised from current applicable level of 60% to 30% .
All commodities to be accepted as collateral should be of same quality specification which is deliverable under the contract specification of commodity derivatives being traded on the Exchange.
All other extant provisions with regard to Liquid Assets shall continue to be in force.
This shall be effective from the date of the circular.
About the Author
