SEBI Cuts Agri-Commodity PAC Meetings to Once a Year

Circular No. SEBI/HO/MRD/MRD-PoD-1/P/CIR/2025/087; Dated: 12-06-2025

The Securities and Exchange Board of India (SEBI) has issued an amendment to the provisions governing the Product Advisory Committee (PAC) under the Commodity Derivatives Segment. This revision aims to bring greater flexibility in the functioning of PACs, particularly in the context of agricultural commodities.

1. Amendment to the Master Circular

SEBI has specifically amended paragraph 2.4.4.i of the Master Circular for Commodity Derivatives Segment, originally issued on August 04, 2023. The revised directive provides updated guidance on the minimum frequency of PAC meetings.

2. Revised Meeting Frequency Requirements

Under the amended norms, the following provisions apply:

• For all commodities: The PAC must meet at least twice a year, and more frequently if required by the regulatory or market conditions.
• For agricultural commodities: The PAC is now required to meet at least once a year, as opposed to the previous mandate of twice yearly meetings. Additional meetings may still be conducted as and when necessary.

3. Comparison with Previous Norms

Earlier, SEBI mandated that PACs for all commodities, including agricultural ones, must meet at least twice a year, with provision for additional meetings based on regulatory or operational needs.

The new amendment introduces differentiated meeting frequency, acknowledging the unique characteristics and dynamics of agricultural commodities markets, which may not require as frequent deliberation as non-agri segments.

4. Objective and Impact

This amendment is expected to:

• Enhance regulatory flexibility for exchanges and committees
• Reduce administrative burden for agricultural PACs, while maintaining oversight
• Allow PACs to focus on product design, market feedback, and regulatory alignment more effectively based on the nature of commodities dealt with

5. Conclusion

With this update, SEBI continues to demonstrate a responsive regulatory approach by aligning oversight requirements with market realities, especially for agricultural commodity derivatives. Stakeholders are advised to review the revised circular and ensure timely compliance with the new PAC meeting norms.

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