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What is the story about?
Securities and Exchange Board of India (SEBI) has proposed a set of measures to enhance market efficiency and broaden investor access, including extending early pay-in (EPI) benefits to options contracts in commodity derivatives.
In a consultation paper, SEBI said clearing corporations may allow market participants to deposit certified goods in accredited warehouses against options contracts sold—similar to the facility currently available for futures contracts.
For such positions, clearing corporations may, based on risk assessment, exempt participants from various margin requirements, though mark-to-market margins will continue to be collected. The proposal follows representations from market participants seeking to extend the EPI benefit to options as well.
EPI enables investors to deliver securities or underlying assets ahead of the settlement cycle, helping reduce margin requirements, avoid short-delivery penalties and allow faster utilisation of sale proceeds.
OBPP scope may expand to IFSCA products
Separately, SEBI has proposed allowing Online Bond Platform Providers (OBPPs) to offer products regulated by the International Financial Services Centres Authority (IFSCA), as well as certain tax-saving bonds under the Income Tax Act.
Currently, OBPPs are permitted to distribute products regulated by domestic authorities such as the Reserve
Bank of India
and the Insurance Regulatory and Development Authority of India, but not those governed by IFSCA.
Also Read: SEBI proposes amendments to securitised debt norms to align with RBI framework
Under the proposal, OBPPs would be allowed to offer IFSCA-regulated products in compliance with the Foreign Exchange Management Act (FEMA), including limits under the Liberalised Remittance Scheme (LRS). They would also follow norms similar to SEBI-registered brokers operating in GIFT-IFSC.
The move is aimed at promoting ease of doing business and expanding investment options for retail investors. SEBI has invited public comments on the proposals until May 26.
In a consultation paper, SEBI said clearing corporations may allow market participants to deposit certified goods in accredited warehouses against options contracts sold—similar to the facility currently available for futures contracts.
For such positions, clearing corporations may, based on risk assessment, exempt participants from various margin requirements, though mark-to-market margins will continue to be collected. The proposal follows representations from market participants seeking to extend the EPI benefit to options as well.
EPI enables investors to deliver securities or underlying assets ahead of the settlement cycle, helping reduce margin requirements, avoid short-delivery penalties and allow faster utilisation of sale proceeds.
OBPP scope may expand to IFSCA products
Separately, SEBI has proposed allowing Online Bond Platform Providers (OBPPs) to offer products regulated by the International Financial Services Centres Authority (IFSCA), as well as certain tax-saving bonds under the Income Tax Act.
Currently, OBPPs are permitted to distribute products regulated by domestic authorities such as the Reserve
Also Read: SEBI proposes amendments to securitised debt norms to align with RBI framework
Under the proposal, OBPPs would be allowed to offer IFSCA-regulated products in compliance with the Foreign Exchange Management Act (FEMA), including limits under the Liberalised Remittance Scheme (LRS). They would also follow norms similar to SEBI-registered brokers operating in GIFT-IFSC.
The move is aimed at promoting ease of doing business and expanding investment options for retail investors. SEBI has invited public comments on the proposals until May 26.
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