SEBI to introduce commodity position limits to curb price fluctuations
The Securities and Exchange Board of India (SEBI) is creating three categories for agricultural commodities and will introduce limits that investors can hold for each one to try to reduce price fluctuations.
Commidities will be classed as sensitive, broad or narrow, bassed on the frequency of government interventions in their markets and overall availability, SEBI said on Tuesday.
The new position limit for sensitive commodities will be 0.25 percent of deliverable supply, SEBI said in a circular.
It will be 0.5 percent for narrow commodities and 1 percent for broad commodities, it added.
Reporting by Sudarshan Varadhan; Editing by Mark Potter
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