CIRCULAR
SEBI/HO/CDMRD/DMP/CIR/P/2016/75
August 30, 2016
To,
The Managing Directors / Chief Executive Officers
All Commodity Derivatives Exchanges
Sir / Madam,
Sub: Trading Hours/Trading Holidays on Commodity Derivatives Exchanges
1. As per Section 131(4) of Finance Act, 2015 all rules, directions, guidelines, instructions, circulars, or any like instruments, made by the erstwhile FMC or the Central Government applicable to recognized associations under the FCRA would continue to remain in force for a period of one year from the date on which FCRA was repealed (September 29, 2015), or till such time as notified by SEBI, whichever is earlier.
2. Erstwhile FMC, from time to time, had prescribed norms related to Trading Hours/Trading Holidays. This circular is being issued to consolidate and update such norms.
Trading Hours
3. All Commodity Derivatives Exchanges shall permit trading only from Monday to Friday.
4. Trading hours shall be fixed by the Exchange within the time limits as mentioned in the table below:
| S. No | Commodity Category | Trade Start Time | Trade End time | |
| After Start of US Day light Savings in Spring Season | After End of US Day light Savings in Fall Season | |||
| 1 | Internationally Referencable Non-Agri Commodities | 10:00 AM | 11:30 PM | 11:55 PM |
| 2 | Internationally Referencable Agri Commodities* | 10:00 AM | 9:00 PM | 9:30 PM |
| 3 | All Other Commodities | 10:00 AM | 05:00 PM | |
| *Presently traded internationally referencable Agri commodities are Crude Palm Oil, Cotton, Kapas Soya Oil and Sugar |
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5. With regard to Muhurat Trading on Diwali (Lakshmi Poojan) day, all National Commodity Derivatives Exchanges shall jointly decide the common trade timing and notify the same to the market under prior intimation to SEBI. 6. Exchanges shall ensure that they have necessary risk management system and infrastructure in place commensurate to their trading hours. Trading Holidays 7. With regard to Trading holidays of National Commodity Derivatives Exchanges, all such Exchanges shall jointly decide upon the common holiday list within the broad framework of the Negotiable Instruments Act, 1881 and also taking into consideration Central/State/Local holidays and notify the same to the market well in advance under prior intimation to SEBI. On such trading holidays, National Exchanges may permit trading of internationally referencable commodities in evening session i.e. post 5:00 PM, in case corresponding international markets are open. 8. With regard to Trading Holidays of Regional Commodity Derivatives Exchanges, each Exchange shall decide upon the holiday list within the broad framework of the Negotiable Instruments Act, 1881 and also taking into consideration Central/State/Local holidays and notify its holiday list to the market well in advance under prior intimation to SEBI. 9. While finalizing Trading Holidays list, Exchanges shall suitably take into account the views of market participants. Frequent changes in holiday List shall be avoided i.e. once decided, same holidays should be followed every year irrespective of the holidays falling on a working day or a non-working day in that year. 10.The provisions of this circular shall come into effect from September 29, 2016 in supersession of all earlier directives issued by erstwhile FMC with regard to matters related to Trading Hours/Trading Holidays. 11.This circular is issued in exercise of the powers conferred under Section 11(1) of the Securities and Exchange Board of India Act 1992 to protect the interests of investors in securities and to promote the development of, and to regulate the securities market. 12.Exchanges are advised to: i. to make necessary amendments to the relevant bye-laws, rules and regulations.
6. Exchanges shall ensure that they have necessary risk management system and infrastructure in place commensurate to their trading hours. Trading Holidays 7. With regard to Trading holidays of National Commodity Derivatives Exchanges, all such Exchanges shall jointly decide upon the common holiday list within the broad framework of the Negotiable Instruments Act, 1881 and also taking into consideration Central/State/Local holidays and notify the same to the market well in advance under prior intimation to SEBI. On such trading holidays, National Exchanges may permit trading of internationally referencable commodities in evening session i.e. post 5:00 PM, in case corresponding international markets are open. 8. With regard to Trading Holidays of Regional Commodity Derivatives Exchanges, each Exchange shall decide upon the holiday list within the broad framework of the Negotiable Instruments Act, 1881 and also taking into consideration Central/State/Local holidays and notify its holiday list to the market well in advance under prior intimation to SEBI. 9. While finalizing Trading Holidays list, Exchanges shall suitably take into account the views of market participants. Frequent changes in holiday List shall be avoided i.e. once decided, same holidays should be followed every year irrespective of the holidays falling on a working day or a non-working day in that year. 10.The provisions of this circular shall come into effect from September 29, 2016 in supersession of all earlier directives issued by erstwhile FMC with regard to matters related to Trading Hours/Trading Holidays. 11.This circular is issued in exercise of the powers conferred under Section 11(1) of the Securities and Exchange Board of India Act 1992 to protect the interests of investors in securities and to promote the development of, and to regulate the securities market. 12.Exchanges are advised to: i. to make necessary amendments to the relevant bye-laws, rules and regulations.
7. With regard to Trading holidays of National Commodity Derivatives Exchanges, all such Exchanges shall jointly decide upon the common holiday list within the broad framework of the Negotiable Instruments Act, 1881 and also taking into consideration Central/State/Local holidays and notify the same to the market well in advance under prior intimation to SEBI. On such trading holidays, National Exchanges may permit trading of internationally referencable commodities in evening session i.e. post 5:00 PM, in case corresponding international markets are open. 8. With regard to Trading Holidays of Regional Commodity Derivatives Exchanges, each Exchange shall decide upon the holiday list within the broad framework of the Negotiable Instruments Act, 1881 and also taking into consideration Central/State/Local holidays and notify its holiday list to the market well in advance under prior intimation to SEBI. 9. While finalizing Trading Holidays list, Exchanges shall suitably take into account the views of market participants. Frequent changes in holiday List shall be avoided i.e. once decided, same holidays should be followed every year irrespective of the holidays falling on a working day or a non-working day in that year. 10.The provisions of this circular shall come into effect from September 29, 2016 in supersession of all earlier directives issued by erstwhile FMC with regard to matters related to Trading Hours/Trading Holidays. 11.This circular is issued in exercise of the powers conferred under Section 11(1) of the Securities and Exchange Board of India Act 1992 to protect the interests of investors in securities and to promote the development of, and to regulate the securities market. 12.Exchanges are advised to: i. to make necessary amendments to the relevant bye-laws, rules and regulations.
8. With regard to Trading Holidays of Regional Commodity Derivatives Exchanges, each Exchange shall decide upon the holiday list within the broad framework of the Negotiable Instruments Act, 1881 and also taking into consideration Central/State/Local holidays and notify its holiday list to the market well in advance under prior intimation to SEBI.
9. While finalizing Trading Holidays list, Exchanges shall suitably take into account the views of market participants. Frequent changes in holiday List shall be avoided i.e. once decided, same holidays should be followed every year irrespective of the holidays falling on a working day or a non-working day in that year. 10.The provisions of this circular shall come into effect from September 29, 2016 in supersession of all earlier directives issued by erstwhile FMC with regard to matters related to Trading Hours/Trading Holidays. 11.This circular is issued in exercise of the powers conferred under Section 11(1) of the Securities and Exchange Board of India Act 1992 to protect the interests of investors in securities and to promote the development of, and to regulate the securities market. 12.Exchanges are advised to: i. to make necessary amendments to the relevant bye-laws, rules and regulations.
10.The provisions of this circular shall come into effect from September 29, 2016 in supersession of all earlier directives issued by erstwhile FMC with regard to matters related to Trading Hours/Trading Holidays. 11.This circular is issued in exercise of the powers conferred under Section 11(1) of the Securities and Exchange Board of India Act 1992 to protect the interests of investors in securities and to promote the development of, and to regulate the securities market. 12.Exchanges are advised to: i. to make necessary amendments to the relevant bye-laws,
11.This circular is issued in exercise of the powers conferred under Section 11(1) of the Securities and Exchange Board of India Act 1992 to protect the interests of investors in securities and to promote the development of, and to regulate the securities market. 12.Exchanges are advised to: i. to make necessary amendments to the relevant bye-laws,
12.Exchanges are advised to: i. to make necessary amendments to the relevant bye-laws, rules and regulations.
i. to make necessary amendments to the relevant bye-laws, rules and regulations.
ii. bring the provisions of this circular to the notice of the stock brokers of the Exchange and also to disseminate the same on their website.
iii. communicate to SEBI, the status of the implementation of the provisions of this circular.
13.This circular is available on SEBI website at www.sebi.gov.in under the category “Circulars” and “Info for Commodity Derivatives”.
Yours faithfully,
Vikas Sukhwal
Deputy General Manager
Division of Market Policy
Commodity Derivatives Market Regulation Department
vikass@sebi.gov.in
