Sebi lowers stress testing limit for commodity derivatives
Economic Times 2 hrs ago·12 Aug 2026, 2:02 pm
The Securities and Exchange Board of India (Sebi) has reduced the Z-score threshold used for stress testing commodity derivatives from ten to five. This change lowers the required margin buffer for traders, aiming to simplify compliance and reduce the cost of trading these contracts.
This adjustment is expected to make commodity markets more accessible by decreasing the financial burden on participants. While this benefits traders by freeing up capital, it also implies a higher degree of price volatility. Investors should monitor how this impacts liquidity and risk management in the coming months.
Key takeaways
- Category: Economy.
- Flagged as a high-impact, market-moving story.
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